National Income Accounting

In NCERT Introductory Macroeconomics, Chapter 1, this topic builds the framework of national income accounting. You distinguish final from intermediate goods, map the circular flow between households, firms, and government, and define GDP, GNP, NNP, and national and personal income. The lesson compares measuring output by value added, income, and expenditure, separates nominal from real income using prices and the GDP deflator, and closes by asking what GDP leaves out, from unpaid work and inequality to damage to the environment, as a measure of welfare.

Try a free lessonMoney and Banking Determination of Income and Employment Government Budget and the Economy