1.3 The income components of GDP Wages and other Labor Income Interest Rent and other Property Income ·Profits 。Indirect Tax Depreciation CHAPTER 2 The Data of Macroeconomics slide 15
CHAPTER 2 The Data of Macroeconomics slide 15 The income components of GDP • Wages and other Labor Income • Interest • Rent and other Property Income • Profits • Indirect Tax • Depreciation 1.3
GDP: 1.3 An important and versatile(多方面)concept We have now seen that gDP measures ■total income ▣total output total expenditure the sum of value-added at all stages in the production of final goods Return CHAPTER 2 The Data of Macroeconomics slide 16
CHAPTER 2 The Data of Macroeconomics slide 16 GDP: An important and versatile(多方面) concept We have now seen that GDP measures ▪ total income ▪ total output ▪ total expenditure ▪ the sum of value-added at all stages in the production of final goods 1.3 Return
2 GNP vs.GDP Gross National Product(GNP): total income earned by the nation's factors of production, regardless of where located Gross Domestic Product(GDP): total income earned by domestically-located factors of production,regardless of nationality. (GNP-GDP)=(factor payments from abroad)-(factor payments to abroad) CHAPTER 2 The Data of Macroeconomics slide 17
CHAPTER 2 The Data of Macroeconomics slide 17 GNP vs. GDP ▪ Gross National Product (GNP): ▪ total income earned by the nation’s factors of production, regardless of where located ▪ Gross Domestic Product (GDP): total income earned by domestically-located factors of production, regardless of nationality. (GNP – GDP) = (factor payments from abroad) – (factor payments to abroad) 2
2 Discussion Question: In your country, which would you want to be bigger,GDP or GNP? Why? CHAPTER 2 The Data of Macroeconomics slide 18
CHAPTER 2 The Data of Macroeconomics slide 18 Discussion Question: In your country, which would you want to be bigger, GDP or GNP? Why? 2
2 (GNP-GDP)as a percentage of GDP for selected countries,1997. U.S.A. 0.1% Bangladesh 3.3 Brazil -2.0 Canada -3.2 Chile -8.8 Ireland -16.2 Kuwait 20.8 Mexico -3.2 Saudi Arabia 3.3 Singapore 4.2 CHAPTER 2 The Data of Macroeconomics slide 19
CHAPTER 2 The Data of Macroeconomics slide 19 (GNP – GDP) as a percentage of GDP for selected countries, 1997. U.S.A. 0.1% Bangladesh 3.3 Brazil -2.0 Canada -3.2 Chile -8.8 Ireland -16.2 Kuwait 20.8 Mexico -3.2 Saudi Arabia 3.3 Singapore 4.2 2