Measuring Domestic Output and National Income

1
Measuring Domestic Output and National Income

• Chapter 7

2
Chapter 7 Table 7.1
3
Chapter 7 Table 7.2
4
Expenditure v. Income Definitions of GDP
Chapter 7 Figure 7.1

• GDP Y C Ig G Xn

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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

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Gross v. Net Investment Ig In
Chapter 7 Figure 7.2
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Chapter 7 Table 7.3
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Chapter 7 Table 7.4
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The Circular Flow of Payments
Chapter 7 Figure 7.3
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Chapter 7 Table 7.5
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Chapter 7 Table 7.6
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Chapter 7 Table 7.7
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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

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Chapter 7 Table 7.7
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Historical GDP Price Index http//research.stloui
sfed.org/fred2/series/GDPCTPI/21 Historical
Consumer Price Indexhttp//research.stlouisfed.o
rg/fred2/series/CPIAUCNS/9