Search results
Results From The WOW.Com Content Network
where Y represents national income or GDP, C is consumption, I is investment, G is government spending and X–M stands for net exports. This represents GDP because all the production in an economy (the left hand side of the equation) is used as consumption (C), investment (I), government spending (G), and goods that are exported in excess of ...
The government budget balance, also referred to as the general government balance, [1] public budget balance, or public fiscal balance, is the difference between government revenues and spending. For a government that uses accrual accounting (rather than cash accounting ) the budget balance is calculated using only spending on current ...
The net exports is the part of GDP which is not consumed by domestic demand: N X = Y − ( C + I + G ) = Y − Domestic demand {\displaystyle NX=Y-(C+I+G)=Y-{\text{Domestic demand}}} If we transform the identity for net exports by subtracting consumption, investment and government spending we get the national accounts identity:
Suppose also that inflation had halved the value of its currency over that period. To meaningfully compare its GDP in 2000 to its GDP in 1990, we could multiply the GDP in 2000 by one-half, to make it relative to 1990 as a base year. The result would be that the GDP in 2000 equals $300 million × 1 ⁄ 2 = $150 million, in 1990 monetary terms.
NDP: Net domestic product is defined as "gross domestic product (GDP) minus depreciation of capital", [6] similar to NNP. GDP per capita: Gross domestic product per capita is the average market value rendered per person. GNI per capita: Gross national income per capita is related to average income per person and mean income.
There is a net inflow of money into the private sector. The private sector had a 4.4% GDP surplus in 2019. [3] A deficit would mean households and businesses together are net borrowers, reducing their financial asset position. Foreign sector or "rest of the world": A surplus balance means those outside the U.S. are net savers.
where NX is net exports, e is the nominal exchange rate (the price of foreign currency in terms of units of the domestic currency), Y is GDP, and Y* is the combined GDP of countries that are foreign trading partners. Higher domestic income (GDP) leads to more spending on imports and hence lower net exports; higher foreign income leads to higher ...
Aggregate income [1] [2] [3] is the total of all incomes in an economy without adjustments for inflation, taxation, or types of double counting. [4] Aggregate income is a form of GDP that is equal to Consumption expenditure plus net profits.