Transcript Consumer Spending by Type, 2002 (in billions)

Consumer Spending by Type, 2002 (in billions)
Category
Durables
Nondurables
Services
Spending in
2001
Percent
(billions) of Total
$872.4
12
2,113.9
29
4,314.5
59
Source:Bureau of Economic Analysis
Total consumption
by
U.S. households
in 2002 was a
$7.3
trillion
Components of Business Fixed Investment, 2002
(billions/percent of total)
Hous ing
269. 30 / 17.0%
Equip. & Software
470. 90 / 29.7%
Business St ructures
847. 60 / 53.4%
Source: www.bea.gov
Two Approaches to Measuring GDP, 2002
(all data in billions of dollars)
Expenditure Approach
Consumption
$7,301
Investment
1,586
Government expenditure
1,973
Exports
1,018
Minus: Imports
1,436
Total = GDP
$10,442
Factor Payments Approach
Employee compensation
$5,999
Profits, rent, and interest
2,273
minus: net income earned abroad
23
Capital consumption adjustment
1,393
Indirect business taxes
800
Total = GDP
$10,442
Note: These figure are subject to revision
Source: Bureau of Economic Analysis
From National Income to Disposable Income, 2002
(all data in billions)
National Income
$8,272
Less: Corporate Profits
659
Less: Contributions for Social Insurance
386
Plus: Dividends
434
Plus: Transfer Payments
1,287
Equals: Personal Income
8,948
Minus: Personal Taxes
1,118
Equal: Personal Disposable Income
$7,830
Note: These figure are subject to revision
Source: Bureau of Economic Analysis
Personal disposable income is a
good measure of the
spending power
of the household sector
Measuring GDP: A Summary
Expenditure Approach: GDP = C + I + G + NX
Value-Added Approach: GDP = Sum of value
added created by all firms
Factor payments approach: GDP = Sum of factor payments
made by all firms = wages and
salaries + interest + rent +
profit = National Income