3 ms·
This is producers income, not wages as is obviously what is being referenced in this thread, and the layman's definition of income And dollars spent on imports
by adam_arthur 4y ago
This is producers income, not wages as is obviously what is being referenced in this thread, and the layman's definition of income
And dollars spent on imports do not increase local GDP
- JumpCrisscross 4y ago> producers income, not wages TNI is the sum of all "sum of all wages, rent, interest, and profits." Wages are in GDP because the purchase and sale of labour is a transaction. Even in the expenditure approach, G includes government employees' wages. Did you click the CFI link? The "What is the GDP Formula?" section is less than 200 words. > dollars spent on imports do not increase local GDP No. Hence the NX/NFI border adjustment. (In the income approach we count foreigners' domestic incomes and citizens' foreign incomes instead of exports and imports.)
- adam_arthur 4y agoWages being included as a component in GDP calculation does not make wages equal to GDP.