Economics formula sheet

Expenditure on final goods = consumption expenditure + investment expenditure

GVA = value of output - intermediate consumption
aggregate consumption expenditure = CE by households + CE by the gov. + CE by
non profit private institutions
Investment = change in capital stock
fixed investment = stock of fixed assets with the producers at the end of
accounting year + stock of fixed " " at the beginning " "
Inventory investment = Inventory stock at the end of accounting year + inventory
stock " " at the beginning " "
Gross investment = net investment + depreciation
Net investment = gross investment - depreciation
Depreciation = machine price / years of use
national income = rent + profit + wages + interest
domestic income + NFIA = national income
NFIA = factor income by our residents from rest of the world + factor income by
non residents in domestic territory
national income - NFIA = domestic income
GDP - depreciation = NDP
NDP + depreciation = GDP
GNP - depreciation = NNP
NNP + depreciation = GNP
Domestic product mp - NIT = domestic product fc
national product mp - NIT = national product fc
NIT = indirect taxes - subsidies
GDP mp = NDP mp + depreciation
NDP mp  = GDP mp - depreciation
GNP mp  = GDP mp + NFIA
NNP mp = NDP mp + NFIA
GDP fc = compensation + rent + interest + profit + depreciation
NDP fc = compensation + profit + rent + interest
GDP fc = NDP fc + depreciation
NDP fc = GDP fc - depreciation
GNP fc = GDP fc + NFIA
NNP fc = NDP fc + NFIA
NNP fc = compensation + rent + interest + profit + NFIA
nominal GDP = quantity of accounting year * prices during accounting year
real GDP = quantity during accounting year * prices during base year
real GDP = GDP at current prices / price index * 100
nominal GDP = real GDP * price index / 100
GDP deflator = GDP at current / GDP at constant * 100
GDP deflator = nominal GDP / real GDP * 100
value added = value of output - intermediate consumption
value of output = sales +change in stock
change in stock = closing stock - opening stock
GDP MP - Depreciation = NDP MP
NDP MP   - NIT = NDP FC
NDP FC (Domestic income) + NFIA = NNP FC (national income)
NNP FC  = NDP FC + NFIA
NDP FC = compensation of employees + operating surplus + mixed income
Operating surplus = rent + interest + profit
GDP MP = value added by firm A + value added by firm B
excise duty + GST = indirect tax