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What are two aspects of the economy that GDP measures: 1) Performance 2) General Wealth
1. What are five measures of national income: 1) Gross National Product 2) Net national income 3) National income 4) personal income 5) Disposable income
2. How is Gross Domestic Product (GDP) translated into Gross National Product: All payments received outside of the United States are added and all payments made to the foreign-owned resources in the United States are Subtracted.
3. How is GNP translated into Net National Product (NNP): Capital consumption allowances are subtracted from the GNP.
4. How is NNP into National income (NI): All taxes that a business must pay as a cost of doing business, except the corporate profits tax, are subtracted...
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