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You're being downvoted because you're wrong about textbook definitions and then calling other commenters uneducated and spreading false information. GDP and GDI
by em500 4y ago
You're being downvoted because you're wrong about textbook definitions and then calling other commenters uneducated and spreading false information. GDP and GDI (aggregate domestic production and aggregate domestic income) measure the same thing both conceptually and in an accounting sense. Discrepancies are caused by measurement errors, because they're different concepts. This is literally textbook macro-economics (e.g. Mankiw Ch 3, or a wikipedia summary [1], or the Bank of Englands layman explanation [2], or NBER [3]).
If people in the US buy things made in China, it is accounted for in both the GDP and the GDI in China by exactly the same amount (and likewise for US GDP and GDI if people in China buy things in the US).
[1] https://en.wikipedia.org/wiki/Gross_domestic_product#Income_approach https://en.wikipedia.org/wiki/Gross_domestic_product#Income_...
[2] https://www.bankofengland.co.uk/knowledgebank/what-is-gdp https://www.bankofengland.co.uk/knowledgebank/what-is-gdp
[3] https://www.nber.org/system/files/working_papers/w17421/w17421.pdf https://www.nber.org/system/files/working_papers/w17421/w174...