Title Macroeconomics Complete.ppt ✅

MACROECONOMIC ANALAYSIS M. A. Ist YEAR By Binuman Mote 9/5/2016 #
UNIT-2: NATIONAL INCOME ACCOUNTING Circular flow of Income and Expenditure (Two sector, three sector, four sector circular flow) Meaning of National Income (Marshallian , Piguvian and Fisherian Definition regarding to NI) Different Concepts of National Income (GDP, NDP, GNP, NNP, NI, PI, DI, PI) Nominal GDP, Real GDP deflator Measurement of National Income (Product method, Income method and expenditure method) Difficulties in the Measurement of National Income National Income at Current Price and Constant Price Need/Importance of National Income Accounting Sector Accounting (household, business, government foreign and social accounting) 9/5/2016 #
Circular Flow of Income and Expenditure Circular flow means continual circular movement of money and goods in the economy. Keynes was the first to note the fact of the circular flow of economic activity. There is no doubt that economy is an integrated activity for the production, distribution consumption. In caring out these economic activities, people are involved in making transaction, i.e. buying and selling of goods and services Economic transactions generate two kinds of flows: flows of goods and services and flow of money. Product and money flow in the opposite direction. For example, when people buy goods and services, they have to pay which is received by the seller Similarly, when producers or firms buy or hire factors of production, they have to make payment, which is received by factor owner. 9/5/2016 #