Formula For Calculating Gdp Income Approach

In practice the formula for calculating gdp according to the income approach is expressed in the following way.

Formula for calculating gdp income approach. Gdp national income capital consumption allowance statistical discrepancy gdp n ational i ncome c apital c onsumption allowance s tatistical discrepancy. Gdp c i g x m c private consumption expenditure. Gdp tni t d f. Gdp total national income sales taxes depreciation net foreign factor income where.

Labor income w rental income r interest income i profits pr ni w r i pr. Ni is the sum of the following components. Gdp total national income sales taxes depreciation net foreign factor income. M value of imports.

With the production approach value added is measured as the. The income approach is a way for calculation of gdp by total income generated by goods and services. This approach calculates national income ni. According to the income approach gdp can be computed by finding total national income tni and then adjusting it for sales taxes t depreciation d and net foreign factor income f.

The income approach of gdp calculation is based on the total output of a nation with the total factor income received by residents or citizens of a nation. Thus we can use the following formula. The formula for calculating gdp by income approach is gdp compensation of employees rental royalty income business cash flow net interest. Gdp value added at basic prices taxes less subsidies on products.

The formula for calculating gdp using the expenditure approach is the following. Tni total national income nffi net foreign factor income begin aligned text tni text sales taxes text depreciation text nffi. I investment expenditure. Income approach to calculating gdp.

Tni sales taxes depreciation nffi where. X value of exports. G government consumption expenditure. Learn how to calculate gross domestic product or gdp using the expenditure approach.