IMPORTANT FORMULAS!

how to calculate GDP: 

• expenditure approach: C+IG+G+XN
• income approach: W(wages. compensation of employees. salary) + R(rents) + I(income)  + P(profit) + S(statistical adjustments) 

trade:

• exports - imports
• if the difference is negative, then it is a deficit. 
• if the difference is positive, then it is a surplus.

budget:

• government purchases  + government transfer payments - government tax & fee collection
• if the answer is positive then it is a deficit
• if the answer is negative then it is a deficit  

national income: 

• compensation of employees + rental income + interest income + proprietors income +  corporate profits 
• GDP - indirect business taxes - depreciation - net foreign factor payment 

disposable personal income:

• national income - personal household taxes + government transfer payment 

net domestic product: 

• GDP - depreciation

net national product:

• GNP - depreciation

GNP 

• GDP + net foreign factor payment