1 Consumers expenditure not houses, PDI-savings
2 General government final consumption(current) no loans+transfer payments+exp.by govn institutions(harbours)
3 Gross domestic fixed capital formation.
4 value of physical increases in stocks and work in progress
6 Statistical discrepancy
1 Income from employment
3 Gross trading profits of companies
4 -"-public corporations
5 -"-general govn enterprises
7 Imputed charge for the consumption of non-trading capital(own houses)
8 -stock appreciation(gain in value)
Manufacture biggest (oil), services increases
-Adjustment for financial services(interest payments)
Care for double counting
1 no sector by sector breakdown
2 variations and linkages among components
3 difficult to measure
4 Different national incomes per head(Size of population).
5 The distribution of income (Lorenz curve).UK Wealth less evenly distributed than income.
6 Inflation and the GDP deflator(RPI only consumer spending)
7 Government expenditure (progressive tax makes more even).
8 Non-monetary transactions (growing own food, in Kenya 25% allowance is made, in developed countries negligible)
9 Tax evasion (black market).
10 Leisure. (UK has longest working week and biggest working population although developing countries might have even more).
11 International comparisons -
a Exchange rates fluctuate after 1971
b Prices and inflation differ
c Transport costs
d Subsistence economy(growing own 25%Kenya)
govn expenditure pattern
e Standard of living depends:income, life expectancy, IMR, doctors per1000, durable goods(house), freedom of speech/religion, literacy,