Expenditure Income personalConsumption:-durables-nondurablesInvestment (gross):-Unsold inventories-buildings-Government spending:G+SNet exports:-exports:G+S+otherGoods = trade -importsWagesRentsInterstProfitsNNI +RNE (eg. welfare payments)-ENR (undistributed corp profits)=personal income-personal taxes =disposable income -consumption =savings GDP Net domestic product (NDP)*Minus Indirect taxes *Minus Depreciation (capital consumption allowance) =GDP*Minus paid to foreigners= GNPMINUS personal incomeMINUS consumption=NNI Net domestic product - Paid to foreigner = net national income productProfit = greek letter piexports incomeC 1000I 200G 300X 400-M -350W 900R 150I 300Pi 200=NNP 14501450-75CCA-75T =NNINNI 1300RNE 150-ENR -50PI 1400PT-300DI 1100GDP: 1550 GNP 1450T 75CGA 75Net inv = Ig-CGA=300-75 =225to FGN -100GNP 1450C -1000Sav 100Ch 8 Injections = Ig , G, XLeakages = S, Tx, M leakage = injection for stability (econ not rising or falling)(just SUM should equal)CH9Inventory changes DRIVE GDPTax multiplier = 4-1 = -3 (always 1 less & opposite sign to open econ