Unformatted text preview: infrastructure development, national defense, law enforcement, public education, etc. It does not include transfer payments.) 4. Net exports: (exports – imports) (Foreign demand for US goods & services minus domestic demand for foreign goods & services ) GDP: Sum of the above 4 categories of expenditures yields GDP. It is GDP expressed in terms of the total market value of all final goods & services DEMANDED & PURCHASED by the above 4 groups in a given period. (AE) 1. National Income (or income earned by factors of production: • Wages, salaries • Rents • Interest • Dividends • Proprietor’s Income • Corporate Profits 2. Depreciation allowance: (~10% of US GDP) 3. Indirect business taxes: (~10% of U.S. GDP) GDP: Sum of the above yields GDP expressed in terms of income earned by factors of production in a given period. It can also be expressed in terms of the total output of the economy in this time period. (Y)...
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This note was uploaded on 11/10/2011 for the course ECON 4310 taught by Professor Staff during the Fall '08 term at Kennesaw.
- Fall '08