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Consumption (51%) Gov Consumption (22%) Business Investment (16%) Gov Investment (0.03) Exports (28%) Imports (24%) GDP Economics 104 Measuring GDP — Income Approach* 7 Statistics Canada: GDP by Income & Expenditure The market value of production provides income for the economy, broadly as either (1) labour income,
or (2) capital income.
More narrowly, the income components are
(1) Compensation of employees — labour income
... total remuneration, in cash or in kind, payable by a producer to an employee in return
for work done. (SNA2008, paragraph 7.5)
– all forms of compensation for labour (e.g. wages & salaries, stock options, dental plans etc)
– employer’s contributions to social security schemes for labour (e.g. CPP & EI) * The details here di↵er from the textbook. Statistics Canada has been revising its National Accounts for the last few
years. Details here are from: A New Presentation for the Quarterly National Accounts, May 2012. Economics 104 8 (2) Gross operating surplus — capital income
... the return to capital employed in the production process before deducting any interest
charges on ﬁnancial liabilities, or rent payable on land or natural resources required to carry
out the production process (SNA2008, paragraph 7.12).
Two parts to GOS:
– net operating surplus (i.e. proﬁts)
– consumption of ﬁxed capital
...the decline in the value of the stock of produced ﬁxed assets owned or used by producers, due to normal obsolescence, physical deterioration or normal accidental damage. It is
similar to business accounting recording of depreciation. It does not include degradation
or depletion of non-produced assets such as mineral deposits, forests or land (SNA2008
paragraphs 6.240 and 6.241).
(3) Gross mixed income — capital/labour income
...the operating income of unincorporated businesses which includes both the remuneration
of the labour services of the owner as well as the return to cap...
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- Spring '10