1. LEARNING OBJECTIVES OF NATIONAL INCOME ACCOUNTS
* To determine the level of prosperity of a State
* To obtain an accurate estimated value of goods and services produced within one year of community
* To help create a plan for the future implementation of development programs
* Knowing about the structure of the economy of a State
* Able to compare the state of the economy from time to time inter-regional or inter-provincial
* Able to compare the state of inter-state economy
* Can help formulate government policy.
1. What is meant by:
* GDP / GDP (Gross Domestic Product / Gross Domestic Product)
Gross Domestic Product is the amount of product in the form of goods and services produced by the production units within the boundary of a State for one year. In the calculations, including also the results of production and services produced by a company / foreigners who operate in the territory in question
* GNP / GNP (Gross National Product / Gross National Product)
GNP is the value of goods and services produced by people of a State within a certain period, usually one year, including goods and services produced by the State community residing abroad.
* National income: the sum of all income received by people in a country for a year.
How to Determine the national income
* Production Method
National income is the sum of the total value of goods and services produced by all economic sectors of society within a certain period
Y = [(Q1 X P1) + (P2 X Q2) + (Pn X Qn) … …]
* Revenue Method
National income is the sum of the total revenue (rent, wage, interest, profit) received by the owners of production factors adalam a country during one period.
Y = r + w + i + p
* Expenditure Method
National income is the sum of all expenditures made by the entire household economy (RTK, RTP, RTG, RT Foreign Affairs) in a State for one year.
Y = C + I + G + (X – M)
