ECON 2400 Lecture Notes - Lecture 14: Income Approach, Intermediate Good, Macroeconomics
20 Apr 2017
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Document Summary
The chief aim of national income accounting is to obtain a measure of the total quantity of goods and services produced for the market in a given country over a given period of time. Gdp is published on a quarterly basis as part of the national income and product accounts (nipa), one source for which is the survey of current business, published by the u. s. There are three approaches to measuring gdp, each of which is incorporated in some way in. All three approaches give exactly the same measure of gdp, provided there are no errors of measurement in using any of these approaches. The three approaches are the product approach, the expenditure approach, and the income approach. We consider a simple fictional economy that captures the essentials of national income accounting. This is an island economy where there is a coconut producer, a restaurant, consumers, and a government.
