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The Estimated Size of U.S. Manufactured Capital Stock, 2006
Type of Capital
Equipment and software
Structures
Residences
Inventories
Consumer durable goods
Total Value of Manufactured Capital
Source: Bureau of Economic Analysis
Value in Trillions of
Dollars at the End of the
Year
5.9
17.2
17.4
1.9
3.9
46.4
Gross Domestic Product, Product Approach, 2006
Sector and Subsector
Households and institutions production
Private households
Nonprofit institutions
Business production
Government production
Federal government
State and local governments
Total: Gross domestic product
Production by
Production by
Subsector (trillions Sector (trillions of
of dollars)
dollars)
1.50
.83
.67
10.19
1.50
.46
1.04
13.20
Gross Domestic Product, Spending Approach, 2006
Sector and Type of Spending
Household and institutions spending
(personal consumption expenditures)
Durable goods
Nondurable goods
Services
Business spending
(gross private domestic investment)
Fixed investment
Change in private inventories
Net foreign sector spending
(net exports of goods and services)
Exports
Less: Imports
Government spending
(government consumption expenditures and
gross investment)
Federal
State and local
Total: Gross domestic product
Spending by Type Spending by Sector
(trillions of dollars) (trillions of dollars)
9.22
1.05
2.69
5.49
2.21
2.16
.05
-.76
1.47
2.23
2.52
.93
1.59
13.20
Gross Domestic Product, Income Approach, 2006
Income and Adjustments
Types of Income and Adjustments
(trillions of dollars)
National income
11.66
Less: Net income payments from the rest of
the world
.06
Plus: Depreciation (consumption of fixed
capital)
1.62
Less: Statistical discrepancy
.02
Total: Gross domestic product
13.20
Calculation of Nominal GDP in an “Apples-and-Oranges” Economy
(1)
Description
Year 1
Apples
Oranges
Year 2
Apples
Oranges
(2)
Price
this Year
(3)
Quantity
this Year
(4)
Nominal GDP= sum of
[column (2) × column (3)]
$1.00
$2.00
100
50
$100
$100
$200
$1.50
$2.00
100
75
$150
$150
$300
Calculation of Constant-Dollar Real GDP
(1)
Description
Year 1 (Base)
Apples
Oranges
Year 2
Apples
Oranges
(2)
Price in
Base Year
(3)
Quantity
this Year
(4)
Real GDP =sum of
[column (2) × column (3)]
$1.00
$2.00
100
50
$100
$100
$200
$1.00
$2.00
100
75
$100
$150
$250
Real and Nominal GDP
(Trillions of $)
Nominal GDP
Real GDP
(Chained 2000 $)
Calculation of Parts of a Constant-Weight Price Index
(1)
Description
Year 1
Apples
Oranges
Year 2
Apples
Oranges
(2)
Price
this
Year
(3)
Quantity in
Base Year
(4)
Sum of (Prices × Base
Quantities) = sum of
[column (2) × column (3)]
$1.00
$2.00
100
50
$100
$100
$200
$1.50
$2.00
100
50
$150
$100
$250
Production
Spending
C + I + G + NX
Firms
Y
I
Consumers
Government
G
NX
Rest of the
World
C
Household and institutions spending = 650
Household and institutions production =150
Net income payments from the rest of the world = 5
Nonprofit institutions production = 50
State and local government spending = 30
Change in private inventories = 2
Depreciation = 60
Business spending = 50
Exports = 225
Imports = 125
Government production = 200
Statistical discrepancy = 0
GDP = 850
Deriving Real GDP in Chained (Year 1) Dollars
Type of Measure
Year 1
Year 2
Nominal GDP
Fisher quantity index
(current to previous year)
$200
$300
———
1.225
100 ×1.225
= 122.5
(122.5  $200)/100
= $245
Chain-type quantity index
100
Real GDP (chained Year 1 dollars)
= $200