Economic Indicators and Measurements

Expenditure Method

C +	Consumption	Consumer durables, non-durables, services
I +	Investment	Structures (incl. Residential), Equipment, and Inventory
G +	Government Consumption	Government Spending on Goods, Services, and Salaries.
X -	EXports	Goods & Services Shipped Abroad
IM	IMports	Goods & Services from Abroad
=	GDP	A + NX = (C + I + G) + (X – IM)

Income Method

• Survey domestic residents and calculate their wage income, interest income, rental income plus the income of proprietors of small firms plus the profits & depreciation of the corporate sector.
• Subtract net international income flows.
• GDP = compensation of employees + proprietor’s income + rental income + corporate profits + net interest