Chapter 16 National income, expenditure and product. Y. $. E. P. Gross Domestic Product. Gross Domestic Product (GDP) = the market value of all final goods and services produced in the economy in a given period (e.g. 1 year)
Source: Adapted from
OECD, Economic Outlook, July 2004.
Sum of Value Added = Final Sales Price
Consumption expenditure by households, plus
Government purchases of goods and services, plus
Investment expenditure by businesses, plus
Net export expenditures
Income derived from the production of this year’s output e.g.
Non-income charges or allocationsTwo Sides to GDP: Expenditure and Income
• Output: GDP(O)
• Expenditure: GDP(E)
• Income: GDP(I)
• Average of these three: GDP(A)
Source: Adapted from ABS, Year Book Australia, 2004, p. 771.
Source: Adapted from World Bank, World Development Indicators, 2004, http://www.worldbank.org.
Source: Adapted from the World Bank, World Development Indicators, 2003, Table 4.9.