ECN502 Chapter Notes -National Income And Product Accounts, Gross Domestic Product, Net Domestic Product
Document Summary
Chapter 07 - measuring domestic output, national income, and the price. National income accounting measures the economy"s performance by measuring the flows of income and expenditures over a period of time. National income accounts serve a similar purpose for the economy, as do income statements for business firms. Consistent definition of terms and measurement techniques allows us to use the national accounts in comparing conditions over time and across countries. The national income accounts provide a basis for of appropriate public policies to improve economic performance. Gdp is the monetary measure of the total market value of all final goods and services produced within a country in one year. Money valuation allows the summing of apples and oranges; money acts as the common denominator. Gdp includes only final products and services; it avoids double or multiple counting, by eliminating any intermediate goods used in production of these final goods or services.
