Additional_GDP - National Saving = Private Saving Government Saving Measuring Real GDP 2004 2 1996 2 2004 1 1996 1 2003 2 1996 2 2003 1 1996 1 Q P

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Nominal GDP 2003 2003 2003 2003 1 1 2 2 2004 2004 2004 2004 1 1 2 2 P Q P Q P Q P Q + +
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Measuring GDP: Expenditure Approach Y = C + I + G +X C = Consumption I = Investment G = Government Expenditures X = Net Exports = EX - IM
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Measuring GDP: Income Approach GDP = Labor Income + Capital Income + Depreciation + Indirect Business Taxes + Net Income of Foreign Residents
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Measuring GDP: Production Approach Value Added = Value of Production – Value of Intermediate Goods
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National Saving S = Y – C - G
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Private Saving S p = Y – C - T
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Government Saving S g = T – G Deficit: T – G < 0 Surplus: T – G > 0
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Savings Relationships
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Unformatted text preview: National Saving = Private Saving + Government Saving Measuring Real GDP 2004 2 1996 2 2004 1 1996 1 2003 2 1996 2 2003 1 1996 1 Q P Q P Q P Q P + + Real GDP for 2003: Real GDP for 2004: Alternative Inflation Measures GDP Deflator GDP Deflator = Nominal GDP / Real GDP GDP Deflator 2003 2 1996 2 2003 1 1996 1 2003 2 2003 2 2003 1 2003 1 Q P Q P Q P Q P + + Nominal GDP/Real GDP= Consumer Price Index (CPI) 1996 2 1996 2 1996 1 1996 1 1996 2 2003 2 1996 1 2003 1 Q P Q P Q P Q P CPI + + =...
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This note was uploaded on 04/14/2008 for the course ECON 102 taught by Professor Rossana during the Winter '08 term at University of Michigan.

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Additional_GDP - National Saving = Private Saving Government Saving Measuring Real GDP 2004 2 1996 2 2004 1 1996 1 2003 2 1996 2 2003 1 1996 1 Q P

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