Expenditure Approach

Expenditure Approach
- add up the market value of all domestic expenditures made on all final goods and services in a single year
C + Ig +G+ Xn= GDP

Income Approach
- add up all the income earned by house holds and firms in a single year

Statistical Adjustment

GDP-  W+R+I+P+ 
- wages
- rents
-interest
- profit



Wages
- compensation of employees
-salary supplement

• Pision
• health
• insurance
• welfare

Rents

- ten tints to land lords

-lease payment by a corporation for the use their space

Interest

-money paid by private business to the supplies of loans used to purchase capital

Profit 

- corporate profit

-corporate income taxes could show up as dividends

-undistributed corporate profits.