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Flashcards in National Income Deck (7)
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1
Q

GDP equation expenditure method

A

TE = C + I + G + X - M

2
Q

What occurs at market equilibrium?

A

TE = TY = TO

3
Q

standard of living equation

A

real GNP / population

4
Q

GNP equation

A

GDP + net property income from abroad

5
Q

NNI equation

A

GNP - capital consumption

6
Q

GDP

A

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

7
Q

difference between GDP and GNP?

A
  • 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