NATIONAL INCOME ACCOUNTING

National income accounting is a system that measures and tracks the economic activity of a country, and provides a comprehensive measure of its economic performance. It is an important tool for policymakers, economists, and businesses to analyze and understand the economy.

HISTORY: The idea of national income accounting originated in the early 20th century, with the work of economists such as Simon Kuznets and Richard Stone. Kuznets developed the first comprehensive system of national accounts for the United States in the 1930s, which served as a model for other countries. Stone, who won the Nobel Prize in Economics in 1984, developed the concept of Gross Domestic Product (GDP) in the 1940s.

MEASURES: There are several measures used in national income accounting to track economic activity, including:

1. Gross Domestic Product (GDP): This measures the total value of goods and services produced within a country’s borders in a given period of time.
2. Gross National Product (GNP): This measures the total value of goods and services produced by a country’s citizens, regardless of where they are located.
3. Net National Product (NNP): This measures the total value of goods and services produced by a country’s citizens, after accounting for depreciation.
4. National Income (NI): This measures the total income earned by individuals and businesses in the economy.

METHODS: There are two main methods used in national income accounting:

1. Expenditure approach: This method calculates GDP by adding up the total spending on goods and services in the economy, including consumption, investment, government spending, and net exports.
2. Income approach: This method calculates GDP by adding up the total income earned by individuals and businesses in the economy, including wages, profits, and rent.

Overall, national income accounting provides a useful framework for understanding and analyzing economic activity in a country, and helps policymakers and businesses make informed decisions.

 

 

FOR MANY MORE  UPDATES AVAILABLE CLICK BELOW 

CLICK THE BELOW LINK TO READ THE COMPLETE CONTENTS, SOME CONTENTS OF THIS WEBSITE ARE FOR GOLD SUBSCRIBERS ONLY. Join us as a GOLD SUBSCRIBER and get access to read important books. CEV LIBRARY GOLD SUBSCRIPTION

KIND ATTENTION
We are going to close all what’s groups of CEV soon due to difficulties in posting information or message in more than 5 groups of CEV at a time. All future posts of empanelment notices & professional importance will be shared on
1. https://t.me/+dbHNkNO22xsyYTY1
2. www.valuerworld.com
3. The Twitter handle of CEV India https://twitter.com/cevindia?t=XbqlvnwUVz1G3uPgs749ww&s=09 after closing the groups. All members of these groups are requested to register themselves at the following link immediately for Getting all related timely updates