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Nội dung text Short Notes _ National Income Accounting.pdf




4 ◼ Per Capita Income- GDP per capita measures a countries output per person, indicating the standard of living. Per capita income = GDP (adjusted for inflation) Total population ◼ The Circular Flow of Income– Phase 1- Production Firm produces goods/services with help of factor services Phase 2- Income/ Distribution The flow of factor income in form of rent etc, from firms to households. Phase 3- Expenditure/ disposition The income received by different factors of production, is spent on consumption of goods and services. THERE ARE 3 METHODS OF CALCULATING NATIONAL INCOME 1. PRODUCT METHOD 2. EXPENDITURE METHOD 3. INCOME METHOD ◼ Value Added Method/ Product Method Prodution of Goods + Services Distribution as factor incomes (Rent, Wages etc.) Deposition / Consumption Investment

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