1. Gross Domestic Product and other Indicators
Unit 12.1

2. What is GDP? National Income Accounting Gross Domestic Product (GDP)
C + I + G + NX
Consumption
Investment
Government Purchases
Net Exports
Consumption
70%
Government Purchases
15%
Net Exports
-5 %
Investment
16%

3. Real and Nominal GDP Nominal GDP Real GDP Calculated each year
Adjusted for Inflation

4. What Real GDP Doesn’t Measure
GDP Per Capita
Happiness
Volunteerism
Natural Resources
Under the table payments
Black Market

5. Other Economic Performance Measures
Gross National Product (GNP)
GDP minus foreign made products
Net National Product (NNP)
GNP minus depreciation of capital stocks
National Income (NI)
NNP minus property and sales taxes
Personal Income (PI)
Income received by the people
NI minus social security and tax payments an add social security, welfare, and unemployment payments
Disposable Personal Income (DPI)
PI minus personal income taxes