ECON 162 10 19 15 Simple Circular Flow Model Ways of Measuring GDP 1 GDP as value of final output 2 GDP as aggregate expenditures 3 GDP as sources of income 4 GDP as uses of income GDP Can Be Measured As 1 Value of final output PiQi i 2 Aggregate Expenditures GDP C I G X M 3 Sources of Income GDP W i R PROFITS NFIA CCA SD Price of Good A Quantity of Good A NFIA Receipts of factor income from the rest of world payments of factor income to rest of world 4 Uses of Income GDP DC S T M For any firm Measuring GDP as expenditure is equivalent to measuring GDP as income Profit Sales Costs For all firms producing financial goods and services Gross Profit Gross Sales GrossCosts Gross Sales Gross Costs Gross Profits National Income Product Accounts NIPA Simon Kuznets National Income Methodology 5 Expenditure Approach Gross Domestic Product GDP C I G X M Gross National Product GNP GDP NFIA
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