18096318
Notes from a class on Testing the Economy By simply: Melcah T. Pascua Countrywide Income Accounting The primary way of measuring the economy’s performance is its total annual total outcome of goods and services or, as it is called, its combination output. Aggregate output is labeled Gross Domestic Item (GDP): the total market value of all final services and goods produced in the year.
Three approaches of computing GDP. 1 . The Expenditure Approach (Output Approach) Personal Consumption Expenditure (C)¦¦¦¦¦¦ xxxxx Major Private Home Investment (Ig)¦¦¦¦. ¦. xxxxx Government Spending (G)¦¦¦¦¦¦¦¦¦¦. ¦¦¦ xxxxx Net Exports (Xn)¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦. ¦.. ¦. xxxxx Gross Domestic Product ¦¦¦¦¦¦¦¦¦¦¦¦¦ xxxxxxx (C & Ig + G & Xn) installment payments on your The Salary Approach (Allocation or Revenue Approach) Payment of Employees¦¦¦¦¦¦¦¦. ¦¦¦¦. xxxxx Rents¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦. ¦¦¦¦¦¦.. xxxxx Interest¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦.. ¦¦¦¦¦¦¦ xxxxx Proprietor’s Income¦¦¦¦¦¦¦¦¦¦.. ¦¦¦¦¦¦¦ xxxxx Corporate Profits¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦. xxxxx Corporate Income Taxes¦¦¦¦¦. xxxxx Dividends¦¦¦¦¦¦¦¦¦¦¦¦¦.. xxxxx Undistributed Corporate Profits¦. xxxx Nationwide Income¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦.. xxxxx Indirect Business Taxes¦¦¦¦¦¦¦¦¦. ¦¦¦¦¦¦.. xxxxx Consumption of Set Capital¦¦¦¦¦¦¦¦¦¦¦¦. xxxxx Net Overseas Factor Cash flow Earned in home country¦¦¦¦¦¦. ¦¦¦¦. xxxxx Gross Household Product ¦¦¦¦¦¦¦¦¦¦¦¦¦. xxxxx 3. The Industry-Origin Approach (Value-Added Approach) Farming, hunting, forestry, and fishing¦¦. ¦¦.. xxxx Agriculture and forestry¦¦¦¦¦¦¦¦. ¦¦¦¦. xxxx Fishing¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦.. ¦¦ xxxx Industry¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦. ¦. ¦¦¦¦¦.. xxxx Mining and quarrying¦¦¦¦¦¦¦¦¦¦¦¦¦. xxx Manufacturing¦¦¦¦¦¦¦¦¦. ¦¦¦¦¦¦¦¦. xxxx Construction¦¦¦¦¦¦¦¦¦¦¦. ¦¦¦¦¦¦¦. xxxx Electricity, gas, and water¦¦¦¦¦¦¦. ¦¦¦.. xxxx Service sector¦¦¦¦¦¦¦¦¦¦¦¦¦¦.. ¦¦¦¦¦¦. xxxx Transport, storage¦¦¦¦¦¦¦¦. ¦¦¦¦¦¦. xxxx Trade and repair of motor vehicles, motor bikes, personal andhousehold goods and communication¦¦¦¦¦¦¦¦.. xxxx Financial intermediation Real estate, booking andbusiness activities¦. xxxx Community administrationand protection, compulsory social security¦¦¦¦¦¦¦¦.. xxxx Other services¦¦¦¦¦¦¦¦¦¦¦¦¦¦¦ ¦¦. xxxx
Gross Home-based Product ¦¦¦¦¦¦¦¦¦. ¦¦¦¦¦. Xxxx Other National Accounts: Net Domestic Merchandise (NDP) NDP = GROSS DOMESTIC PRODUCT ” Consumption of fixed capital (depreciation) National Salary (NI) NI = NDP ” Net foreign factor income ” Indirect Organization Taxes Personal Income (PI) PI = NI , Corporate Income Taxes “Undistributed Business Profits ” Social Reliability contributions & Transfer Obligations Disposable Income (DI) = C+S DI = PI ” Personal Taxes In which: C sama dengan Consumption S = Cost savings Nominal GROSS DOMESTIC PRODUCT vs . Real GDP Hypothetical Data of the Economy Year |Units of |Price every |Price |Unadjusted / |Adjusted / | | |Output |unit of |index |Nominal GDP |Real GDP | | | |output | | | | |1 |5 |10 | | | | |2 |7 |20 | | | | |3 |8 |25 | | | | |4 |10 |30 | | | | |5 |11 |28 | | | |
Price of the current year Price Index = Times 100 Price of the foundation year Nominal GDP =Price X Quantity Nominal GROSS DOMESTIC PRODUCT Real GDP = X 100 Value Index
