Compendium admissions 2023-25
Download 4.08 Mb. View original pdf
|
- Navigate this page:
- Formula for GDP GDP=C+G+I+NX where: C=Consumption G=Government spending I=Investment NX=Net exports
- 34 Gross National Product Gross National Income
| GDP Per Capita: GDP per capita is a measure of GDP per individual in a country's population. It denotes that the quantity of output or revenue per person in an economy might reflect average productivity or living standards. GDP per capita can be expressed nominally, in real (inflation-adjusted) terms, or in purchasing power parity (PPP) terms. In its most basic form, per-capita GDP indicates how much economic output value can be assigned to each individual citizen. This also translates to a measure of overall national wealth since GDP market value per person may easily be used as a metric of affluence. Formula for GDP GDP=C+G+I+NX where: C=Consumption G=Government spending I=Investment NX=Net exports ● Private consumption expenditures or consumer spending are referred to as consumption. Customers spend money on goods and services. ● Government spending includes both government consumption and gross investment. Governments spend money on things like equipment, infrastructure, and salaries. When both consumer and corporate investment fall dramatically, government expenditure may become more important relative to other components of a country's GDP. ● Private domestic investment or capital expenditures are referred to as an investment. Businesses spend money to invest in their operations. A company, for example, may purchase machinery. ● Net exports are calculated by subtracting total exports from total imports (NX = Exports - Imports. Net exports are the commodities and services that are produced by an economy that are exported to other nations fewer imports acquired by local customers. 34 Gross National Product & Gross National Income The gross national product (GNP) measures the total output of individuals or organizations born in a country, including those headquartered outside. GNP does not include foreigners' domestic production. Another indicator of economic growth is gross national income (GNI). It is the total of all revenue made by a country's citizens or nationalities (regardless of whether the underlying economic activity occurs domestically or abroad. GNP and GNI have a connection analogous to the link between the production output) method and the income technique used to compute GDP. GNP uses the production method, whereas GNI employs the income approach. GNP calculates a country's domestic income plus indirect business taxes and depreciation. Download 4.08 Mb. Share with your friends:
|