1. Besides GDP there are also

2.  Gross National Product  Net National Product  National Income  Personal Income  Disposable Personal Income

3.  UNTIL DECEMBER 1991  The Commerce Department used Gross National Product to measure the US economy.  GNP Measures the total dollar value of all final output produced with factors of production owned by residents of a country during one year  This is when we DO COUNT plants/manufacturers in other countries

4.  The United Nations and most countries use GDP as the primary measure of economic production.  Switched from GNP to GDP in 1991  The change has made it easier for US economists and business firms to make international economic comparisons.

5.  This includes money spent on replacing defecting or outdated equipment and machinery.  When this depreciation is subtracted from GNP, the result is a nation’s NET NATIONAL PRODUCT.

6.  To determine the total income paid to the owners of a nation’s factors of production, economists use the measure of national income.  The sum of employees’ and proprietors’ income, real and estimated rental income, corporate profits, and net interest.

7.  Sometimes we are interested in the total amount of income earned by people in a given nation.  National Income – Income that does NOT go to people (profits, taxes, SS) + Social Security Checks Paid = Personal Income

8.  What is the difference between GROSS PAY and NET PAY?  Disposable = the total amount of income available to a nation’s people to spend or save  Calculated by subtracting out personal taxes