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Where Did All the Money Come From?
Believe it or not, there is another way to estimate the
GDP. The GDP can be calculated not only by using the amount that is spent
on purchases, but also by earned annual income.
Economists look at how much money families, businesses, and the government
made in a year and where this earned money came from. It can be broken
down into categories.
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1. |
Wages
are any money that a person, family, business, or the government has
earned through labor. |
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2. |
Interest
is the money paid or earned toward loans, investments, payments, or
bank accounts. |
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3. |
Rent
is something that people receive through letting others use homes,
farms, property, or stores that they own. |
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4. |
Profits
that businesses, large corporations, or even beginning entrepreneurs
make are a part of the GDP. |
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