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Thus the left side gives GDP by the income method, and the right side gives GDP by the expenditure method. The GDP is given on the bottom line of both sides of the report. GDP must have the same value on both sides of the account. This is because income and expenditure are defined in a way that forces them to be equal (see accounting identity ...
GDP is the mean (average) wealth rather than median (middle-point) wealth. Countries with a skewed income distribution may have a relatively high per-capita GDP while the majority of its citizens have a relatively low level of income, due to concentration of wealth in the hands of a small fraction of the population. See Gini coefficient.
As GDP is tied closely to the national accounts system, [19] this may lead to a distorted view of national accounts. Because national accounts are widely used by governmental policy-makers in implementing controllable economic agendas, [ 20 ] some analysts have advocated for either a change in the makeup of national accounts or adjustments in ...
Intermediate consumption (unlike fixed assets) is not normally classified in national accounts by type of good or service, because the accounts will show net output by sector of activity. However, sometimes more detail is available in sectoral accounts of income & outlay (e.g. manufacturing), and from input-output tables showing the value of ...
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In economics, gross value added (GVA) is the measure of the value of goods and services produced in an area, industry or sector of an economy. "Gross value added is the value of output minus the value of intermediate consumption; it is a measure of the contribution to GDP made by an individual producer, industry or sector; gross value added is the source from which the primary incomes of the ...
It is "analogous" to what is "left over" when a business deducts its costs from sales revenue in order to arrive at its profit total. However, the analogy is somewhat deceptive, insofar as the operating surplus in national accounts, as a component of value added, is not truly equal to real generic pre-tax profit receipts.
Dividends are the share of a company’s profits that are paid back to shareholders. Qualified dividends are taxed at a different rate than your regular, earned income or income from interest ...