measures the total output produced within a country's borders - whether produced by that country's own firms or not.
GAWA DITO SA PILIPINAS Gross National Product (GNP) is the market value of all products and services produced in one year by labor and property supplied by the residents of a country.
measures the output generated by a country's enterprises (whether physically located domestically or abroad)
GAWA NG PILIPINO EXPENDITURES METHOD INDUSTRIAL-ORIGIN METHOD INCOME METHOD EXPENDITURES METHOD C + G + I + (X M) = GDP GNP = GDP + Net Factor Income From Abroad
C = EXPENSES OF HOUSEHOLDS G = GOVERNMENT EXPENDITURES I = EXPENDITURES OF BUSINESS FIRMS (X-M) = EXPENDITURES OF THE EXTERNAL SECTOR, X = EXPORTING EXPENSES M = IMPORTING EXPENSES EXPENSES OF HOUSEHOLDS called personal consumption expenditures. These include durable consumer goods like cars, television sets, and other home appliances; non-durable consumer goods like food and clothes; and expenses for services of lawyers, doctors, etc. GOVERNMENT EXPENDITURES are the purchases of finished products and all purchases on some factors of production especially labor. Excluded on this are transfer payments. EXPENDITURES OF BUSINESS FIRMS refers to the expenses for investments by the business firms. Included here are all the final purchase for machinery and equipment for the business, construction of buildings and changes in inventories. NET FACTOR INCOME FROM ABROAD = refers to the part of national income that comes from the difference of the income of Filipinos working abroad and foreign workers in the Philippines. INDUSTRIAL-ORIGIN METHOD A+D+S=GDP
GNP=GDP + Net Factor Income From Abroad A = AGRICULTURE is composed of the industries of farming, fisheries, and forestry. D = INDUSTRY includes mining, manufacturing, construction, electricity, gas and water. S = SERVICE includes transportation and communications, finance, real state, and the private and public services. INCOME METHOD W + R + T + P = NI NI + (ITS) + DA = GNP GDP = GNP - Net Factor Income From Abroad W WAGES of the workers R RENT from land T INTEREST from capital P PROFITS of the entrepreneurs NI NATIONAL INCOME ITS (INDIRECT TAXES- SUBSIDY), DA DEPRECIATION ALLOWANCE W + R + T + P = NI
ITS (INDIRECT TAXES- SUBSIDY), Subsidies are financial assistance given by the government to decrease the cost of production of the business firms.
DA DEPRECIATION ALLOWANCE are reserved costs for the upgrade and maintenance of capital goods.
EXPENDITURES METHOD
INDUSTRIAL ORIGIN METHOD
INCOME METHOD C + G I (X-M) Agriculture + Industry Service Wage + Interest Rent Profit GDP + net factor income from abroad GDP + net factor income from abroad NI + (indirect taxes- Subsidy) + DA GNP - (indirect taxes- Subsidy) - DA GNP - (indirect taxes- Subsidy) - DA GNP - net factor income from abroad NI NI GDP