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Unformatted text preview: he di↵erence?
GDP: Gross Domestic Product — what’s produced within the country no matter who owns the
factors of production (labour, capital)
GNP: Gross National Product — what’s produced by the factors of production owned by residents
of the country, whether produced here or in other countries. (Expenditure measure)
GNI: Gross National Income — income for factors of production owned by residents of the country.
GNP = GNI
The di↵erence between GDP and GNI is (1) net investment income from non-residents and (2)
net compensation received by non-resident employees.1
GNI = GDP +
(resident’s investment income from investments abroad
non-resident’s investment income from domestic investments) +
(resident’s compensation (e.g. wages) for work abroad
non-resident’s compensation for work in domestic economy) The text identiﬁes the di↵erence as net foreign investment income. I am using Statistics Canada’s terminology. As well, the text
ignores net compensation, which is fair enough since it is a very small number.
1 Additional Notes for Lecture 2 Economics 104 GNI = GDP + net investment income from non-residents
+net compensation received by non-resident employees
For Canada, GNI < GDP; net income ﬂows abroad are negative.
2013 Q3 Share of GDI
Gross Domestic Income
Net investment income from non-residents
Net compensation received by non-resident employees
Gross National Income
98.5% 16 Economics 104 12 Unemployment
The Labour Force : total number of employed and unemployed people in the economy.
Labour Force = Employed + Unemployed
Employed — any paid work or self-employment.
Unemployed — not working but actively looking for work; or about to start work in the future.
Not in the Labour Force — e.g. full time students, retirees
The Unemployment Rate
Unemployment Rate = 100 ⇥ Unemployed
Employed + Unemployed Unemployment does not measure:
– Discouraged workers — people who would like to work but have not been actively looking for
– Involuntary part...
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This homework help was uploaded on 03/03/2014 for the course ECON 104 taught by Professor Voss during the Spring '10 term at University of Victoria.
- Spring '10