In the input-output analysis in the GDP specific how to calculate

Gross Domestic Product accounting methods a, with the expenditure method of accounting for GDP expenditure method of accounting for GDP, it is from the use of the product, the purchase of the final product in a year of the expenditure of the total of the final product of the market value of the final product produced in the year calculated. This method is also known as the final product method and the product flow method. If Q1 and Q2?......Qn are used to represent the production of various final products, and P1 and P2......Pn are used to represent the prices of various final products, the formula for accounting for GDP using the expenditure method is: Q1P1+Q2P2+ ......QnPn=GDP In real life, the final use of products and services, mainly residential consumption, business investment, government purchases and exports. Therefore, to account for GDP by the expenditure method is to account for the sum of the expenditures of a country or region in a certain period of time on residential consumption, business investment, government purchases and net exports. Consumption (denoted by the letter C) includes expenditures on consumer durables such as refrigerators, color TVs, washing machines, and automobiles, non-durable consumer goods such as clothing and food, and expenditures on labor such as medical care, travel, and haircuts. Expenditures on the construction of dwellings are not considered consumption. Business investment (denoted by the letter I) is expenditure on adding or renewing capital assets (including plant, machinery and equipment, dwellings and inventories). Investment consists of two broad categories: investment in fixed assets and investment in inventories. Investment in fixed assets refers to investment in new plant, purchase of new equipment, and construction of new dwellings. Why is residential construction considered investment and not consumption? Because dwellings, like other fixed assets, are used for a long time and slowly consumed. Inventory investment is the increase (or decrease) in the value of inventory held by a business. If the nation's business inventories begin the year at $200 billion and end the year at $220 billion, then inventory investment is $20 billion. Inventory investment may be positive or negative because the value of inventory at the end of the year may be greater or less than inventory at the beginning of the year. Business inventory is considered an investment because it generates income. Investment included in GDP is gross investment, which is the sum of replacement investment and net investment, which is also known as depreciation. The division between investment and consumption is not absolute; the exact classification depends on what is specified in the actual statistics. Government purchases (denoted by the letter G) are expenditures by all levels of government for the purchase of goods and services, which include government purchases of arms, military and police services, office supplies and office facilities for government offices, the organization of public **** works such as roads, and the opening of schools. Salaries paid by the government to government employees are also government purchases. Government purchases are substantial expenditures that show a two-way movement of goods, services and money, which directly creates social demand and becomes a component of the gross domestic product (GDP). Government purchases are only a part of government spending, and other parts of government spending such as government transfers and interest on the public debt are not included in GDP.Government transfers are expenditures made by the government not in return for goods and services produced in the current year, including government expenditures on social welfare, social insurance, unemployment relief, poverty assistance, old age security, health care, and subsidies to agriculture. Government transfer payment is the government through its functions to transfer and redistribute income among different members of society, transferring the income of one part of the population to another part of the population, in essence, a kind of wealth redistribution. When there are government transfer payments occur, that is, when the government pays these expenditures, it does not receive any goods and services accordingly; government transfer payments are a kind of monetary expenditures, and the total income of the whole society does not change. Therefore, government transfers are not included in GDP. Net exports (denoted by the letters X-M, with X denoting exports and M denoting imports) are the difference between imports and exports. Imports should be subtracted from the country's gross purchases because it indicates a flow of income to foreign countries and, at the same time, is not an expenditure on the purchase of domestic products; exports should be added to the country's gross purchases because they indicate an inflow of income from foreign countries and are expenditures on the purchase of domestic products, and, therefore, net exports should be counted as part of gross expenditures. Net exports may be positive or negative. Adding up the above four items is the formula for calculating GDP using the expenditure method: GDP = C + I + G + (X-M) II. Accounting for GDP using the income method The income method of accounting for GDP is to calculate GDP from the point of view of income by adding up all kinds of incomes received by the factors of production in the production of the factors of production, i.e., by adding up the wages received by the labor, the ground rent received by the landowner, the interest received by the capital, and the profits received by the GDP is calculated by adding together the wages received by labor, the rent received by landowners, the interest received by capital, and the profits received only by entrepreneurs.This method is also known as the factor-payment method and the factor-cost method. In a simple economy without government, the value added by firms, i.e., the GDP they create, would be equal to factor income plus depreciation, but when the government intervenes, it often levies indirect taxes, at which point GDP should also include indirect taxes and corporate transfers. Indirect taxes are taxes levied on the sale of products, and they include excise taxes and turnover taxes. Such taxes are nominally levied on businesses, but they can be built into the cost of production and ultimately passed on to consumers, so they should also be considered a cost. Similarly, there are corporate transfers (i.e., corporate social charitable donations to non-profit organizations and consumer bad debts), which are not income created by factors of production, but are to be transferred to consumers through the price of the product, and therefore should also be regarded as a cost. Capital depreciation should also be included in GDP because it is not factor income but is included in total investment. Also, the income of unincorporated business owners should be included in GDP. The income of unincorporated business owners is the income of doctors, lawyers, small shopkeepers, farmers, etc. They use their own funds, self-employment, their wages, interest, rent is difficult as the company's accounts, divided into its own business should be paid wages, interest on their own funds, own house rent, etc., their wages, interest, profit, rent often mixed together as non-company entrepreneurs income. In this way, the formula calculated by the income method is: GDP = wages + interest + profit + rent + indirect taxes and corporate transfers + depreciation Theoretically, the GDP calculated by the income method and the GDP calculated by the expenditure method is quantitatively equal.