GDP formulas

GNP- (Gross national product)- Total value of all final  goods and services produced by Americans in a given year.

Expenditure approach ( Goods and services)

• GDP= C+IG+G+XN
• C- personal consumption ( final goods and services)
• Ig- Gross private domestic investment (inventory)
• G- government spending
• Xn- ( net exports- net imports)

Income approach (factors of productions)

• GDP=W+R+I+P+Statistical adjustments
•  W- wages (salaries/compensations)
• R-Rents (rental income)
• I-interest (interest income)
• P-Proprietors income
• Statistical adjustments- To match expenditure approach

Budget deficit-total amount that the government borrows with in a year

• Transfer payments+govt purchase of goods and services- government tax and fee collection
• Deficit +         surplus-

Trade
Exports-imports

• Deficit -     surplus +

National income
NI=compensation of employees+proprietors income+rental income+interest income+corporation profit

Or

                          NI= GDP-indirect business tax-depreciation-net foreign factor

Disposable income

DPI=NI-household taxes (personal taxes)+Government transfer payment

Net domestic product

NDP=GDP-Depreciation

Net national product

NNP=GNP-Depreciation

Gross National Product

GDP-Net foreign factor payment