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Unformatted text preview: gross profit = gross sales gross costs or gross sales = gross costs + gross profits so GDP as expenditures = resource costs + other costs + profit so C + I + G + (X M) = w + i + R - NFIA + CCA + SD + profit so GDP as expenditures = GDP as the sources of income Measuring National Income using the income approach: GDP = w + i + R + profit NFIA + CCA + SD Since GNP = GDP + NFIA then GNP = w + i + R + profit NFIA + CCA + SD + NFIA = w + i + R + profit + CCA + SD since NNP = GNP CCA then NNP = w + i + R + profit + CCA + SD CCA = w + i + R + profit + SD Since NI = NNP SD then NI = w + i + R + profit + SD SD = w + i + R + profit National income is equal to the sum of factor payments in the economy, National income = wages + interest + rents + profits...
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- Spring '05
- National Income