National Income Accounts: GNP(cont) GNP is calculated by adding the value of expenditure on final goods and services produced 1. Consumption expenditure by domestic consumers 2. Investment: expenditure by firms on buildings equipment 3. Government purchases: expenditure by governments on goods and services 4. Current account balance (exports minus imports ) net expenditure by foreigners on domestic goods and services Copyright 2012 Pearson Education. All rights reserved 13-6Copyright © 2012 Pearson Education. All rights reserved. 13-6 National Income Accounts: GNP (cont.) • GNP is calculated by adding the value of expenditure on final goods and services produced: 1. Consumption: expenditure by domestic consumers 2. Investment: expenditure by firms on buildings & equipment 3. Government purchases: expenditure by governments on goods and services 4. Current account balance (exports minus imports): net expenditure by foreigners on domestic goods and services