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Flashcards in National Income Deck (7)
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1

GDP equation expenditure method

TE = C + I + G + X - M

2

What occurs at market equilibrium?

TE = TY = TO

3

standard of living equation

real GNP / population

4

GNP equation

GDP + net property income from abroad

5

NNI equation

GNP - capital consumption

6

GDP

value of all final goods and services produced in an economy during a given time period 

7

difference between GDP and GNP?

  • GNP takes into account income earned by a country's citizens abroad and money sent abroad
  • GDP only accounts for the income earned within a country