Economic Indicators and Measurements



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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

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