GDP - APEconomics/Presley Unit 2: GDP Notes Definition of...

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APEconomics/Presley Unit 2: GDP Notes Definition of GDP: GDP is the market value of all final goods and services produced within a country in a given time period. GDP versus GNP 1. Geographical difference: GD P: domestic : GN P: national : 2. Calculations difference GDP Expenditure Approach: Computing the Expenditure Approach to GDP (product market) C (consumer spending) + Ib (business investment) + G (government spending) + Nx (exports – imports) GDP Income Approach: Computing the Income Approach to the GDP (resource/factor market) Payments to the following = National Income Land (natural resources): rent, tenant and lease payments Labor: comprehension of employees: wages/salaries, fringe benefits, SS, pension Kapital: payments from businesses to suppliers of money capital: interest, savings and bond payments Entrepreneurship : profit/loss from proprietors and corporate profits National Income + Indirect Tb + Depreciation + Net foreign Factor Income – Statistical discrepancy
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This note was uploaded on 05/18/2011 for the course ECON 101 taught by Professor Mcdounough during the Spring '11 term at DeVry Westminster.

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GDP - APEconomics/Presley Unit 2: GDP Notes Definition of...

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