Gross Domestic Product and Economic Growth Power Point Notes
Gross Domestic Product and Economic Growth Power Point Notes
Gross Domestic Product and Economic Growth Power Point Notes
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Measurements of the Macro<br />
economy<br />
• <strong>Gross</strong> <strong>Domestic</strong> <strong>Product</strong> + income earned outside the U.S. by<br />
U.S. firms <strong>and</strong> citizens – income earned by foreign firms <strong>and</strong><br />
foreign citizens located in the U.S. = <strong>Gross</strong> National <strong>Product</strong><br />
• <strong>Gross</strong> National <strong>Product</strong> – depreciation of capital equipment = Net<br />
National <strong>Product</strong><br />
• Net National <strong>Product</strong> + minor statistical adjustments - =<br />
National Income<br />
• National Income - Firms’ reinvested profits, Firms’ income<br />
taxes, Social Security Taxes + other household income =<br />
Personal Income<br />
• Personal Income - individual income taxes =<br />
Disposable Personal Income
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