land

labour

capital

entrepreneurship

Leakages include saving, import spending and government spending.

Injections include investment spending, government spending and import spending.

      If leakages are greater than injections, the size of the circular flow increases

If injections are greater than leakages, the size of the circular flow increases.

a measure of income earned by domestic residents

GDP in constant prices

GDP in current prices

a measure of value of output produced domestically

value of GDP divided by the population

measure of income earned by domestic residents

value of GDP in current prices

value of GDP in constant prices

a measure of income earned by domestic residents

a measure of value of output produced domestically

a value of GDP in current prices

real GDP divided by population

nominal GDP divided by the population

the value of GDP in constant prices

the measure of income earned by domestic residents

the measure of value of output produced domestically

expenditure approach

employment approach

income approach

output approach

exclude output sold in underground markets / ignore environmental destruction

  exclude output that is not sold in markets / ignore product and service quality improvements

disregard the distribution of income / ignore the effects of differing price levels in different countries

all of the above

GNI = GDP + income received from abroad minus income sent abroad

GDP = GNI + income received from abroad minus income sent abroad

GNI = GDP + income sent abroad minus income received from abroad

GDP = GNI + income sent abroad minus income received from abroad

government spending + net export spending + investment spending + consumption spending

investment spending + capital spending + net export spending + government spending

consumption spending + investment spending + net export spending − government spending

consumption spending + investment spending + government spending − export spending

assess the relative size of each sector of the economy

assess the size of each component of GDP

   assess the relative size of payments for the factors of production

assess how much profit firms are earning

assess the relative size of each sector of the economy

assess the size of each component of GDP

assess the relative size of payments for the factors of production

assess how much profit firms are earning

compare economic activity between countries with differing price levels

compare economic activity within a country at different time periods

compare the prices of goods at one point in time to another point in time

compare the prices of goods in one country with those in the USA

  using purchasing power parities

  adding the new price index to the base year price index

using a GDP deflator

knowing the population to derive per capita information