Calculate for GDP

• Budget = government purchases of goods and services + government transfer payments - government tax and fee collection
• + (positive) numbered budget = deficit
• - (negative) numbered budget = surplus
• GNP = GDP + Net Foreign Factor Income
• NNP (net national product) = GNP - depreciation
• NDP (net domestic product) = GDP - depreciation
• National income
1. GDP - indirect business taxes - depreciation - Net Foreign Factor Payment
2. compensation of employees + proprietor's income + corporation profits + rental income + interest income
• Disposable Personal Income (DPI) = National Income - personal household taxes + government transfer payments
• Trade = Export - Import

• Nominal GDP -
• value of output produced in current prices
• Real GDP -
• value of output produced in constant or base (earliest year) year prices
• adjusted for inflation
• can only increase from year to year if output increases
• Product x Quantity = normal/real GDP
• Price Index - measures inflation by tracking changes in the market basket of goods
• (price of market basket of goods in current years/ price of market basket of goods in base years) x 100
• GDP Deflator - a price index used to adjust from nominal to real GDP
• (nominal GDP/real GDP) x 100

1. base year, GDP is always equal to 100
2. years after base year, GDP deflator is > 100
3. years before base year, GDP deflator is < 100

• Inflation Rate -
• (new deflator - old deflator/old deflator) x 100