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Measuring Domestic Output and National Income

Measuring Domestic Output and National Income. Chapter 7. Chapter 7 Table 7.1. Chapter 7 Table 7.2. Chapter 7 Figure 7.1. Expenditure v. Income Definitions of GDP. GDP = Y = C + I g + G + X n. Statistical Adjustments to the Income Definition of GDP. Wages + Rent + Interest + Profits

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Measuring Domestic Output and National Income

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  1. Measuring Domestic Output and National Income Chapter 7

  2. Chapter 7 Table 7.1

  3. Chapter 7 Table 7.2

  4. Chapter 7 Figure 7.1 Expenditure v. Income Definitions of GDP • GDP = Y = C + Ig + G + Xn

  5. Statistical Adjustments to the Income Definition of GDP • Wages + Rent + Interest + Profits • = NI, National Income • NI • + Depreciation • also called Capital Consumption Allowance (CCA) • or Consumption of Fixed Capital (CFC) • + Net Foreign Factor Income (NFFI) • income of foreign workers and capital equipment used to produce U.S. GDP • but not resulting in any income for Americans • = GDP

  6. Statistical Adjustments • NI • + Depreciation • + Net Foreign Factor Income • = GDP • by the income definition • GDP = NI + CCA +NFFI

  7. Chapter 7 Figure 7.2 Gross v. Net Investment: Ig & In

  8. Chapter 7 Table 7.3

  9. Chapter 7 Table 7.4

  10. Chapter 7 Figure 7.3 “The Circular Flow of Payments”

  11. Chapter 7 Table 7.5

  12. Chapter 7 Table 7.6

  13. Chapter 7 Table 7.7

  14. The GDP Price Index • GDP Price Index • = (Nominal GDP/Real GDP) x 100 • Solve for Real GDP: • Real GDP • = (Nominal GDP/GDP Price Index ) x100 • http://research.stlouisfed.org/fred2/series/GDPC96/106

  15. Chapter 7 Table 7.7

  16. Historical GDP Price Index: http://research.stlouisfed.org/fred2/series/GDPCTPI/21Historical Consumer Price Index:http://research.stlouisfed.org/fred2/series/CPIAUCNS/9

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