Sources and uses report
The equation presented previously (Y = C + I + EX) can also be presented as a table. One example, shown in the following table, is called a sources and uses report.
There are two columns. The left column is called “sources”, and the right hand column is called “uses”.
There are two rows in the sources column: GDP and imports.
There are four rows in the uses column:
- Consumption, which is divided into two sub-categories:
* Private consumption, which includes only goods and services produced by private companies, such as bread, clothing, and legal services.* Public consumption, which includes only goods and services provided by the government, such as education, healthcare, and security (i.e., police and military).
- Investment.
- Exports.
Totals uses and total sources are always equal just as the amount of pocket money will always be equal to the amount spent.
Table 4.6
Sources and uses report for Country D (in millions of dollars)
|
Sources |
Uses |
|
GDP 22 Imports 6 |
Private consumption 16 Public consumption 4 Investment 4 Export 4 |
|
Total 28 |
Total 28 |
Table 4.7
Sources and uses report for Country D in a different format ( in millions of dollars)
|
Sources |
Uses |
|
GDP 22
Surplus imports 2 (imports less exports) |
Private consumption 16 Public consumption 4 Investment 4 |
|
Total 24 |
Total 24 |
In Table 4.7, total sources have been decreased by $4 million, as have total uses. Only those that are intended for use by residents of the country are shown in Table 4.8, however, only those goods and services consumed by residents of the country are listed as uses.
