ROMERO, MARIA LILIBETH P.

DKA

National income
National income is the total value a countrys final output of all new goods and services
produced in one year. Understanding how national income is created is the starting
point for macroeconomics.

Gross National Product - GNP

Gross national product (GNP) is an estimate of total value of all the final products and
services produced in a given period by the means of production owned by a country's
residents. GNP is commonly calculated by taking the sum of personal consumption
expenditures, private domestic investment, government expenditure, net exports, and
any income earned by residents from overseas investments, minus income earned
within the domestic economy by foreign residents. Net exports represent the difference
between what a country exports minus any imports of goods and services.

Gross Domestic Product - GDP

Gross domestic product (GDP) is the monetary value of all the finished goods and
services produced within a country's borders in a specific time period. Though GDP is
usually calculated on an annual basis, it can be calculated on a quarterly basis as well.
GDP includes all private and public consumption, government outlays, investments
and exports minus imports that occur within a defined territory. Put simply, GDP is a
broad measurement of a nations overall economic activity.

Expenditure
Definition: An expenditure is a payment in cash or barter credits, or the incurrence of a
liability by an entity, in exchange for goods or services. Evidence of the documentation
triggered by an expenditure is a sales receipt or an invoice. Organizations tend to
maintain tight controls over expenditures, to keep from incurring losses.