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 Copyright2012 Pearson Education.All rights reserved. 13-5Copyright © 2012 Pearson Education. All rights reserved. 13-5 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