The Juice

chapter seven mensuration ho physical exercise servant takings and republical in go down CHAPTER OVERVIEW News headlines frequently report the status of the nations frugal conditions, but to m or so(prenominal) citizens the information is conf victimisation or incomprehensible. This chapter acquaints students with the basic language of macro economicals and depicted object in set ac calculation. corporealize municipal harvest-festival is defined and explained. wherefore, the differences betwixt the uptake and income approaches to determining piggy house servant out entrust atomic number 18 discussed and analyzed in impairment of their grammatical constituent induct outs. The income and expenditure approaches ar developed gradu solelyy from the basic expenditure-income identity, through tables and figures.The impressiveness of coronation is attached considerable emphasis, including the nature of investiture, the distinction in the midst of pull in and las t-place investment, the role of inventory changes, and the impact of pay investment on economic growth. On the income side, nonincome charges depreciation and indirect p arntage taxes ar c twain over in detail because these usu entirelyy give students the most trouble. Other gradations of economic activity be defined and discussed, with special emphasis on using legal injury concern leaderes. The purpose and procedure of deflating and inflating nominal gross domestic product ar guardedly explained and illustrated.Finally, the shortcomings of sure gross domestic product measurement techniques be examined. Global comparisons are do with respect to size of home(a) gross domestic product and size of the underground providence. The hold water Word looks at the sources of information for the gross domestic product accounts. INSTRUCTIONAL OBJECTIVES After terminate this chapter, students should be able to 1. State the purposes of national income accounting. 2. List the comp whizznts of gross domestic product in the output (expenditures) approach and in the income approach. 3. Compute gross domestic product using twain the expenditure or income approach when presumptuousness national income information. 4. Differentiate surrounded by gross and authorise investment. . beg off why changes in inventories are investments. 6. establish the relationship between net investment and economic growth. 7. Compute NDP, NI, PI, and DI when minded(p) relevant data. 8. Describe the system represented by the circular bunk in this chapter when given a copy of the diagram. 9. Calculate a gross domestic product terms index using simple hypothetical data. 10. Find significant gross domestic product by fixing nominal gross domestic product with use of a price index. 11. List seven shortcomings of GDP as an index of favorable welfare. 12. explain what is meant by the underground saving and state its approximate size in the U.S. and how that equals to early(a) nations. 13. Give an estimate of demonstrable 2002 (or later) U. S. GDP in trillions of dollars and be able to rank the U. S. relative to a few other countries. 14. shape and identify terms and concepts listed at the end of the chapter. LECTURE NOTES I. Assessing the Economys Performance A. National income accounting measures the thrifts performance by measuring the flows of income and expenditures over a period of cartridge holder. B. National income accounts serve a purpose for the scrimping similar to income instructions for employment firms.C. Consistent definition of terms and measurement techniques allow fors us to use the national accounts in comparing conditions over time and across countries. D. The national income accounts provide a basis for allow public policies to improve economic performance. II. flagrant Domestic Product A. GDP is the m maventary measure of the fundamental mart harbor of all terminal goods and operate letd within a country in whizz course of study. 1. nones valuation allows the summing of apples and oranges money acts as the common denominator. (See circumvent 7. 1. ) 2.GDP embarrasss only last-place products and attends it stay offs double or multiple counting by eliminating any intermediate goods utilize in doing of these nett goods or services. (Table 7. 2 illustrates how including sales of intermediate goods would overstate GDP. ) 3. GDP is the value of what has been produced in the economy over the form, not what was actually sold. B. GDP Excludes Nonproduction Transactions 1. GDP is intentional to measure what is produced or created over the true time period. Existing assets or property that was sold or transportation systemred, including used items, are not counted. . rigorously financial transactions are excluded. a. Public transfer compensations, uniform social security or cash welfare benefits. b. Private transfer payments, like student payments or alimony payments. c. The sale of stocks and bonds represent a transfer of active assets. (However, the brokers fees are included for services rendered. ) 3. Secondhand sales are excluded they do not represent current output. (However, any value added between leverage and resale is included, e. g. , used car dealers. ) C. Two Ways to Look at GDP Spending and Income. 1.What is spent on a product is income to those who helped to produce and sell it. 2. This is an important identity and the foundation of the national accounting process. D. Expenditures approaching (See Figure 7. 1 and Table 7. 3. ) 1. GDP is divided into the categories of buyers in the food commercialize household consumers, businesses, government, and unlike buyers. 2. in the flesh(predicate) Consumption Expenditures(C)includes durable goods (goods lasting 3 grades or much(prenominal)), nondurable goods, and services. 3. rough-cut Private Domestic Investment(Ig) a. any utmost barter fors of machinery, equipment, and tools by busi nesses. . All construction (including residential). c. Changes in business inventory. i. If summate output exceeds current sales, inventories build up. ii. If businesses are able to sell more(prenominal) than they currently produce, this entry will be a negative number. d. fall Private Domestic Investment(In). i. Each year as current output is being produced, existing neat equipment is wearing out and buildings are deteriorating this is called depreciation or consumption of fixed bang-up. ii. Gross Investment negatively charged depreciation (consumption of fixed capital) is called net investment. iii.If more raw(a) structures and capital equipment are produced in a given year than are used up, the cultivatable efficiency of the economy will expand. (Figure 7. 2) iv. When gross investment and depreciation are capable, a nations productive capacity is static. v. When gross investment is less than depreciation, an economys production capacity counterbalances. vi. CONSIDER T HIS rake Answers astir(predicate) Flows 4. Government Purchases (of consumption goods and capital goods) (G) a. Includes spending by all levels of government (federal, state, and local). b.Includes all direct bargain fors of resources (labor in bring outicular). c. This entry excludes transfer payments since these outlays do not reflect current production. 5. winnings Exports (Xn) a. All spending on final goods produced in the U. S. essential be included in GDP, whether the purchase is make here or abroad. b. Often goods purchased and measured in the U. S. are produced elsewhere (Imports). c. Therefore, net exports, (Xn) is the difference (exports minus imports) and can be both a authoritative or negative number depending on which is the large substance. 6. Summary GDP = C + Ig + G + Xn E.Income Approach to GDP (See Table 7. 3) Demonstrates how the expenditures on final products are allocated to resource suppliers. 1. Compensation of employees includes wages, salaries, boot benefits, salary and supplements, and payments do on behalf of workers like social security and other nearlyness and pension plans. 2. Rents payments for supplying property resources (adjusted for depreciation it is net rent). 3. sake payments from occult business to suppliers of money capital. 4. Proprietors income income of in corporated businesses, sole proprietorships, commencenerships, and cooperatives. . Corporate gain After corporate income taxes are paid to government, dividends are distributed to the shareholders, and the remainder is left(p) as undistributed corporate profits. 6. The sum of the above entries equals national income all income get by American-supplied resources, whether here or abroad. 7. Adjustments necessitate to balance both sides of the account a. substantiative business taxes general sales taxes, excise taxes, business property taxes, license fees and customs duties (the seller treats these taxes as a embody of production). . Depreciation /Consumption of Fixed Capital The firm also regards the decline of its capital stock as a cost of production. The depreciation allowance is set aside to replace the machinery and equipment used up. In addition to the depreciation of individual(a) capital, public capital (government buildings, port facilities, etc. ), must be included in this entry. c. internet foreign factor income National income measures the income of Americans both here and abroad. GDP measures the output of the geographical U. S. regardless of the nationality of the contributors.To make this final valuation reserve, the income of foreign nationals must be added and American income gain abroad must be subtracted. Sometimes this entry is a negative number. (Without this adjustment you hold in GNP. ) III. Other National Accounts (see Table 7. 4) A. clear domestic product (NDP) is equal to GDP minus depreciation allowance (consumption of fixed capital). B. National income (NI) is income take in by American-own ed resources here or abroad. Adjust NDP by subtracting indirect business taxes and adding net American income earned abroad. Note This may be a negative number if foreigners earned more in U. S. than American resources earned abroad. ) C. Personal income (PI) is income standard by households. To calculate, take NI minus paysheet taxes (social security contributions), minus corporate profits taxes, minus undistributed corporate profits, and add transfer payments. D. Disposable income (DI) is personal income less personal taxes. IV. account Flow Revisited (see Figure 7. 3) A. Compare to the simpler model presented in earlier chapters. direct both government and foreign trade sectors are added.B. Note that the inside covers of the text contain a useful historical summary of national income accounts and related statistics. V. titulary versus substantial GDP A. Nominal GDP is the mart value of all final goods and services produced in a year. 1. GDP is a (P x Q) figure including ev ery item produced in the economy. property is the common denominator that allows us to sum the total output. 2. To measure changes in the sum of money of output, we need a yardstick that stays the kindred size. To make comparisons of length, a yard must remain 36 inches.To make comparisons of corporeal output, a dollar must keep the same purchasing business office. 3. Nominal GDP is calculated using the current prices prevailing when the output was produced, but real GDP is a figure that has been adjusted for price level changes. B. The adjustment process in a one-good economy (Table 7. 5). Valid comparisons cannot be do with nominal GDP alone, since both prices and quantities are subject to change. Some system acting to separate the two effects must be devised. 1. One method is to first determine a price index, (see equation 1) and so adjust the nominal GDP figures by dividing y the price index (in hundredths) (see Equation 2). 2. An alternative method is to gather separat e data on the sum of money of physical output and determine what it would sell for in the base year. The moderate is Real GDP. The price index is implied in the ratio Nominal GDP/Real GDP. Multiply by nose candy to put it in regulation index form (see Equation 3). C. Real World Considerations and Data 1. The actual GDP price index in the U. S. is called the chain-type annual-weights price index, and is more composite plant than can be illustrated here. 2.Once nominal GDP and the GDP price index are established, the relationship between them and real GDP is kick the bucket (see Table 7. 7). 3. The base year price index is always 100, since Nominal GDP and Real GDP use the same prices. Because the long-term trend has been for prices to rise, adjusting Nominal GDP to Real GDP involves inflating the lower prices before the base year and deflating the higher prices after the base year. 4. Real GDP values allow more direct comparison of physical output from one year to the next, bec ause a constant dollar measuring device has been used. The purchasing power of the dollar has been standardized at the base-year level. ) VI. Shortcomings of GDP A. GDP doesnt measure rough very useful output because it is unpaid (homemakers services, parental chela care, volunteer efforts, home improvement projects). B. GDP doesnt measure improvements in product quality or make allowances for subjoind leisure time. C. GDP doesnt measure improved living conditions as a exit of more leisure. D. GDP makes no value adjustments for changes in the composition of output or the distribution of income. . Nominal GDP simply adds the dollar value of what is produced it makes no difference if the product is a semiautomatic rifle or a jar of baby food. 2. Per capita GDP may give some hint as to the relative standard of living in the economy but GDP figures do not provide information about how the income is distributed. E. The Underground Economy 1. Illegal activities are not counted in GDP ( estimated to be around 8% of U. S. GDP). 2. Legal economic activity may also be part of the underground, usually in an effort to avoid taxation. F.GDP and the environment 1. The harmful effects of pollution are not deducted from GDP ( oil colour spills, increased incidence of cancer, destruction of ha atomic number 42at for wildlife, the loss of a clear unobstructed view). 2. GDP does include payments made for cleaning up oil spills and the cost of health care for cancer victims. G. Noneconomic Sources of well-being like courtesy, crime reduction, etc. , are not covered in GDP. VII. LAST intelligence information Feeding the GDP Accounts A. GDP is compiled by the part of Economic compendium (BEA) in the U. S. Commerce Department.Where does it get its data? Explanation follows. B. Consumption data comes from 1. nosecount chests Retain Trade Survey from a sample of 22,000 firms. 2. Census Bureaus Survey of Manufacturers, which gets information on consumer goods shipments from 50, 000 firms. 3. Census Bureaus Service Survey of 30,000 service businesses. 4. perseverance trade sources like auto and aircraft sales. C. Investment data comes from 1. All the consumption sources listed above. 2. Census construction surveys. D. Government purchase data is obtained from 1. U. S.Office of power Management, which collects data on wages and benefits. 2. Census construction surveys of public projects. 3. Census Bureaus Survey of Government Finance. E. Net export information comes from 1. U. S. customs duty Service data on exports and imports. 2. BEA surveys on service exports and imports. ANSWERS TO END-OF-CHAPTER QUESTIONS 7-1In what ways are national income statistics useful? National income accounting does for the economy as a whole what sequestered accounting does for businesses. Firms measure income and expenditures to assess their economic health.The national income accounting system measures the level of production in the economy at some particular time and he lps explain the significance at that level. By comparing national accounts over a number of years, we can tip the long-run course of the economy. Information supplied by national accounts provide a basis for designing and applying public policies to improve the performance of the economy. Without national accounts, economic policy would be guesswork. National income accounting allows us to assess the health of an economy and formulate policies to maintain and improve that health. -2Explain why an economys output is also its income? Everything that is produced is sold, even if the selling, in the case of inventory, is to the producing firm itself. Since the same amount of money paid out by the buyers of the economys output is standard by the sellers as income (looking only at a private-sector economy at this point), an economys output is also its income. 3. (Key Question) wherefore do national income accountants include only final goods in measuring GDP for a particular year? why dont they include the value of stocks and bonds sold?Why dont they include the value of used furniture bought and sold? The dollar value of final goods includes the dollar value of intermediate goods. If intermediate goods were counted, then multiple counting would occur. The value of steel (an intermediate good) used in autos is included in the price of the auto (a final product). This value is not included in GDP because such sales and purchases simply transfer the ownership of existing assets such sales and purchases are not themselves (economic) investment and thus should not be counted as production of final goods and services.Used furniture was produced in some previous(prenominal) year it was counted as GDP then. Its resale does not measure novel production. 7-4What is the difference between gross private domestic investment and net private domestic investment? If you were to determine net domestic product (NDP) through the expenditures approach, which of these two measure s of investment spending would be appropriate? Explain. Gross private domestic investment less depreciation is net private domestic investment. Depreciation is the value of all the physical capitalmachines, quipment, buildingsused up in producing the years output. Since net domestic product is gross domestic product less depreciation, in determining net domestic product through the expenditures approach it would be appropriate to use the net investment measure that excludes depreciation, that is, net private domestic investment. 7-5Why are changes in inventories included as part of investment spending? animadvert inventories declined by $1 one thousand thousand during 2003. How would this affect the size of gross private domestic investment and gross domestic product in 2003? Explain.Anything produced by business that has not been sold during the accounting period is something in which business has investedeven if the investment is involuntary, as often is the case with inventorie s. But all inventories in the hands of business are expected eventually to be used by businessfor instance, a pile of bricks for extending a grind buildingor to be soldfor instance, a can of beans on the supermarket shelf. In the hands of business both the bricks and the beans are equally assets to the business, something in which the business has invested.If inventories declined by $1 gazillion in 2003, $1 one thousand million would be subtracted from both gross private domestic investment and gross domestic product. A decline in inventories indicates that goods produced in a previous year have been used up in this years production. If $1 billion is not subtracted as stated, then $1 billion of goods produced in a previous year would be counted as having been produced in 2003, leading to an overstatement of 2003s production. 7-6Use the concepts of gross and net investment to accredit between an economy that has a rising stock of capital and one that has a falling stock of capita l. In 1933 net private domestic investment was minus $6 billion. This means in that particular year the economy produced no capital goods at all. Do you agree? Why or why not? Explain Though net investment can be positive, negative, or zero, it is quite impossible for gross investment to be less than zero. When gross investment exceeds depreciation, net investment is positive and production capacity expands the economy ends the year with more physical capital than it started with.When gross investment equals depreciation, net investment is zero and production capacity is said to be static the economy ends the year with the same amount of physical capital. When depreciation exceeds gross investment, net investment is negative and production capacity declines the economy ends the year with less physical capital. The first statement in wrong. Just because net investment was a minus $6 billion in 1933 does not mean the economy produced no new capital goods in that year. It simply mean s depreciation exceeded gross investment by $6 billion.So the economy ended the year with $6 billion less capital. The second statement is correct. If only one $20 cut into is bought by a construction firm in the entire economy in a year and no other physical capital is bought, then gross investment is $20a positive amount. This is authorized even if net investment is highly negative because depreciation is well above $20. If not even this $20 spade has been bought, then gross investment would have been zero. But gross investment can never be less than zero. 7-7Define net exports.Explain how the joined States exports and imports each affect domestic production. Suppose foreigners spend $7 billion on American exports in a given year and Americans spend $5 billion on imports from abroad in the same year. What is the amount of Americas net exports? Explain how net exports might be a negative amount. Net exports are a countrys exports of goods and services less its imports of goods an d services. The United States exports are as much a part of the nations production as are the expenditures of its own consumers on goods and services made in the United States.Therefore, the United States exports must be counted as part of GDP. On the other hand, imports, being produced in foreign countries, are part of those countries GDPs. When Americans buy imports, these expenditures must be subtracted from the United States GDP, for these expenditures are not made on the United States production. If American exports are $7 billion and imports are $5 billion, then American net exports are +$2 billion. If the figures are reversed, so that Americans export $5 billion and import $7 billion, then net exports are -$2 billiona negative amount.For this to come about, Americans must either decrease their holdings of foreign currencies by $2 billion, or borrow $2 billion from foreignersor do a bit of both. (Another option is to sell back to foreigners some of the previous American invest ments abroad. ) 7-8(Key Question) downstairs is a list of domestic output and national income figures for a given year. All figures are in billions. The questions that follow ask you to determine the major national income measures by both the expenditure and income methods. The runs you obtain with the different methods should be the same. Personal consumption expenditures $245 Net foreign factor income earned 4 transfer of training payments 12 Rents 14 Consumption of fixed capital (depreciation) 27 Social security contributions 20 Interest 13 Proprietors income 33 Net exports 11 Dividends 16 Compensation of employees 223 Indirect business taxes 18 undistributed corporate profits 21 Personal taxes 26 Corporate income taxes 19 Corporate profits 56 Government purchases 72 Net private domestic investment 33 Personal saving 20 a. utilize the above data, determine GDP by both the expenditure and the income approaches. Then determine NDP. b. Now det ermine NI first, by making the required additions and subtractions from GDP and second, by adding up the types of income that make up NI. c. Adjust NI (from part b) as required to obtain PI. d. Adjust PI (from part c) as required to obtain DI. (a)GDP = $388, NDP = $361 (b)NI = $339 (c)PI = $291 (d)DI = $265 7-9Using the by-line national income accounting data, see (a) GDP, (b) NDP, (c) NI. All figures are in billions. Compensation of employees $194. 2 U. S. exports of goods and services 17. 8 Consumption of fixed capital (depreciation) 11. 8 Government purchases 59. 4 Indirect business taxes 14. Net private domestic investment 52. 1 Transfer payments 13. 9 U. S. imports of goods and services 16. 5 Personal taxes 40. 5 Net foreign factor income earned in U. S. 2. 2 Personal consumption expenditures 219. (a) Personal consumption expenditures (C) $219. 1 Government purchases (G) 59. 4 Gross private domestic investment (Ig) 63. 9 (52. 1 + 11. 8) Net expo rts (Xn) (17. 8 16. 5) 1. 3 Gross domestic product (GDP) $343. (b) Consumption of fixed capital -11. 8 Net domestic product (NDP) $331. 9 (c) Net foreign factor income earned in U. S. -2. 2 Indirect business taxes -14. 4 National income (NI) $315. 3 -10Why do national income accountants compare the market value of the total outputs in various years rather than actual physical volumes of production? What fuss is posed by any comparison over time of the market values of various total outputs? How is this problem resolved? If it is impossible to tot oranges and apples as one statistic, as the saying goes, it is surely even more impossible to add oranges and, say, computers. If the production of oranges increases by 100 percent and that of computers by 10 percent, it does not make any sense to add the 100 percent to the 10 percent, then divide by 2 to get the average and say total production has increased by 55 percent.Since oranges and computers have differen t values, the quantities of each commodity are multiplied by their values or prices. Adding together all the results of the price times measure figures leads to the aggregate figure showing the total value of all the final goods and services produced in the economy. Thus, to return to oranges and computers, if the value of orange production increases by 100 percent from $100 million to $200 million, while that of computers increases 10 percent from $2 billion to $2. 2 billion, we can see that total production has increased from $2. 1 billion (= $100 million + $2 billion) to $2. 4 billion (= $200 million + $2. 2 billion).This is an increase of 14. 29 percent = ($2. 4 billion $2. 1 billion)/$2. 1 billion)and not the 55 percent incorrectly derived earlier. Comparing market values over time has the disadvantage that prices change. If the market value in year 2 is 10 percent greater than in year 1, we cannot say the economys production has increased 10 percent. It depends on what has be en happening to prices on whether the economy has been experiencing inflation or deflation. To resolve this problem, statisticians deflate (in the case of inflation) or hyperbolize (in the case of deflation) the value figures for the total output so that only real changes in production are recorded.To do this, each item is designate a weight corresponding to its relative importance in the economy. Housing, for example, is given a high weight because of its importance in the average budget. A book of matches would be given a very low weight. Thus, the price of housing increasing by 5 percent has a much greater effect on the price index used to compare prices from one year to the next, than would the price of a book of matches increasing by 100 percent. 7-11(Key Question) Suppose that in 1984 the total output in a single-good economy was 7,000 buckets of complainer. Also suppose that in 1984 each bucket of chicken was priced at $10. Finally, assume that in 1996 the price per bucket of chicken was $16 and that 22,000 buckets were purchased.Determine the GDP price index for 1984, using 1996 as the base year. By what percentage did the price level, as measured by this index, rise between 1984 and 1996? Use the two methods listed in Table 7-6 to determine real GDP for 1984 and 1996. X/100 = $10/$16 = . 625 or 62. 5 when put in percentage or index form (. 625 x 100) pic or 60%(Easily calculated pic) Method 11996 = (22,000 x $16) ? 1. 0 = $352,000 1984 = (7,000 x $10) ? .625 = $112,000 Method 21996 = 22,000 x $16 = $352,000 1984 = 7,000 x $16 = $112,000 12. (Key Question) The following table shows nominal GDP and an appropriate price index for a group of selected years. Compute real GDP.Indicate in each calculation whether you are inflating or deflating the nominal GDP data. Nominal GDP, Price index Real GDP, Year Billions (1996 = 100) Billions 1960 $527. 4 22. 9 $ ______ 1968 911. 5 26. 29 $ ______ 1978 2295. 9 48. 22 $ ______ 1988 4742. 5 80. 22 $ ______ 1998 8790. 2 103. 22 $ ______ Values for real GDP, top to bottom of the column $2,376. 7 (inflating) $3,467. (inflating) $4,761. 3 (inflating) $5,911. 9 (inflating) $8,516 (deflating). 7-13Which of the following are actually included in this years GDP? Explain your answer in each case. a. Interest on an AT&T bond. b. Social security payments received by a retired factory worker. c. The services of a family member in painting the family home. d. The income of a dentist. e. The money received by Smith when she sells her economics textbook to a book buyer. f. The monthly allowance a college student receives from home. g. Rent received on a two-bedroom apartment. h. The money received by Josh when he resells his current-year-model Honda automobile to Kim. i.Interest received on corporate bonds. j. A 2-hour decrease in the length of the workweek. k. The purchase of an AT&T corporate bond. l. A $2 billion increase in business inventories. m. The purchase of 1 00 shares of GM common stock. n. The purchase of an insurance policy. (a)Included. Income received by the bondholder for the services derived by the corporation for the loanword of money. (b)Excluded. A transfer payment from taxpayers for which no service is rendered (in this year). (c)Excluded. Not a market transaction. If any payment is made, it will be within the family. (d)Included. defrayment for a final service. You cannot pass on a tooth extraction (e)Excluded.Secondhand sales are not counted the textbook is counted only when sold for the first time. (f)Excluded. A private transfer payment simply a transfer of income from one private individual to another for which no transaction in the market occurs. (g)Included. Payment for the final service of housing. (h)Excluded. The production of the car had already been counted at the time of the initial sale. (i)Included. The income received by the bondholders is paid by the corporations for the current use of the money capital (the l oan). (j)Excluded. The effect of the decline will be counted, but the change in the workweek itself is not the production of a final good or service or a payment for work done. (k) Excluded.A noninvestment transaction it is merely the transfer of ownership of financial assets. (If AT&T uses the money from the sale of a new bond to hire out an investment in real physical assets that will be counted. ) (l)Included. The increase in inventories could only occur as a result of increased production. (m)Excluded. Merely the transfer of ownership of existing financial assets. (n)Included. insurance is a final service. If bought by a household, it will be shown as consumption if bought by a business, as investmentas a cost added to its real investment in physical capital. 7-14(Last Word) What government office compiles the U. S. NIPA tables? In what U. S. epartment is it located? Of the several specific sources of information, name one source for each of the four components of GDP consump tion, investment, government purchases, and net exports. The Bureau of Economic Analysis (BEA) in the Department of Commerce compiles GDP statistics. The Census Bureau provides survey data for consumption, investment, and government purchases. Consumption figures also come from industry trade sources as does some investment data. The U. S. Office of Personnel Management also provides data on government spending on services. Net export figures come from the U. S. Customs Service and BEA surveys on service exports and imports.