Calculating the GDP: Expenditure and Income Approach

Depreciation: the loss of value of capital equipment due to normal wear and tear.

Formulas: 

Expenditure Approach to GDP= C + Ig + G + Xn
C= Consumption
Ig= Gross Domestic Investment
G= Government Spending
Xn= Net Exports

Income Approach to GDP= W + R + I + P + Statistical Adjustment

W- Wages/ Compensation of employee/ salary

R- Rent 

I- Interest 

P- Profit 

Budget= Government Purchases of Goods and Services + Transfer Payments - Government Taxes & Fee Collection   (if answer is +=deficit -= surplus)

Trade= Exports - Imports (if answer is += surplus -= deficit)

National Income=

•  Compensation of employees + Rental Income + Interest Income + Properitors Income + Corporate Profit 
• GDP - Indirect Business Taxes - Depreciation - Net Foreign Factor Payments 

Disposable Personal Income= National Income - Personal Household Taxe + Government Transfer Payments. 

Net Domestic Product = GDP - Depreciation 

Net National Product = GNP - Depreciation 

Gross Investments= Net Investment + Depreciation 

GNP= GDP + Net Foreign Factor Payment