National Income
,AIM OF UNIT
Students should be able to define GDP & its components
They should understand the circular flow
Students should be able to explain the expenditure and
income approach in the circular flow
They should be able to recognize the different sectors
that exist in the circular flow
They should be able to measure and calculate GDP using
the key approaches.
, National income accounting
This measures the economy’s overall
performance.
The accounting helps economists and
policy makers to:
Assess the health of the economy by comparing
levels of production at regular intervals
, GROSS DOMESTIC PRODUCT
Gross domestic product (GDP) is a measure of the
income and expenditures of an economy.
It is the total market value of all final goods and services
produced within a country in a given period of time.
It doesn’t include what the citizens earn from other
countries (property income from abroad, shares in
foreign companies and interest from loans advanced
to foreigners).
,AIM OF UNIT
Students should be able to define GDP & its components
They should understand the circular flow
Students should be able to explain the expenditure and
income approach in the circular flow
They should be able to recognize the different sectors
that exist in the circular flow
They should be able to measure and calculate GDP using
the key approaches.
, National income accounting
This measures the economy’s overall
performance.
The accounting helps economists and
policy makers to:
Assess the health of the economy by comparing
levels of production at regular intervals
, GROSS DOMESTIC PRODUCT
Gross domestic product (GDP) is a measure of the
income and expenditures of an economy.
It is the total market value of all final goods and services
produced within a country in a given period of time.
It doesn’t include what the citizens earn from other
countries (property income from abroad, shares in
foreign companies and interest from loans advanced
to foreigners).
