ECON1002 LECTURE 2 NATIONAL ACCOUNTS
Blue book statistics
Household assets – national balance sheet
CO2 emissions – environmental accounts
GROSS DOMESTIC PRODUCT is the market value of the final goods and services produced in
a country in a given time period.
- Gross – before deducting depreciation
- Market Value – prices x quantity
- Final – no intermediate goods (this could be double counting; this is already
accounted for in the final sales price)
- Country – only production in UK borders
- Time Period – GDP is flow
Expenditure Approach
Production -> spending
GDP = C + I + G + ( X – M )
GDP = 1216 + 328 + ( 631 – 39 )
GDP = £1,866 BILLION IN 2015
C – only new goods
I – new capital goods / houses / inventories
G – government purchases of new goods / services
Add X – M to account for RoW
Income Approach
Production -> spending -> income
- Compensation of employees (salaries, benefits like company car)
- Gross operating surplus (from public to private)
- Mixed income
Blue book statistics
Household assets – national balance sheet
CO2 emissions – environmental accounts
GROSS DOMESTIC PRODUCT is the market value of the final goods and services produced in
a country in a given time period.
- Gross – before deducting depreciation
- Market Value – prices x quantity
- Final – no intermediate goods (this could be double counting; this is already
accounted for in the final sales price)
- Country – only production in UK borders
- Time Period – GDP is flow
Expenditure Approach
Production -> spending
GDP = C + I + G + ( X – M )
GDP = 1216 + 328 + ( 631 – 39 )
GDP = £1,866 BILLION IN 2015
C – only new goods
I – new capital goods / houses / inventories
G – government purchases of new goods / services
Add X – M to account for RoW
Income Approach
Production -> spending -> income
- Compensation of employees (salaries, benefits like company car)
- Gross operating surplus (from public to private)
- Mixed income
