National Income Accounting: GDP, GNP & Economic Indicators

Posted by on Mar 29, 2025 in Commercial and Marketing Management | 0 comments

National Income Accounting Fundamentals

1. Measuring National Income and Output

A fundamental principle is that everything produced generates income for someone. The primary measure is Gross Domestic Product (GDP).

GDP: The total market value of all final goods and services produced within a country’s borders during a specific period.

Methods for Measuring GDP

In a Closed Economy:
  1. Sum the Value Added: Calculate the value added by all firms located in the economy.
    • Value Added = Value of Output – Value of
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Understanding Gross Domestic Product (GDP): Macroeconomics Essentials

Posted by on Feb 16, 2025 in Commercial and Marketing Management | 0 comments

1.1 Macroeconomics vs. Microeconomics

Microeconomics focuses on how decisions are made by individuals and firms and the consequences of those decisions. One product, one price, a single market.

Macroeconomics examines the aggregate behavior of the economy – how the actions of all the individuals and firms in the economy interact to produce a particular level of economic performance as a whole. Aggregate production, price index, economy as a whole.

1.2 Gross Domestic Product (GDP)

  • The most frequent
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