This document discusses various concepts and metrics used to measure aggregate economic activity, including: National income accounting provides a framework for measuring total production, consumption, investment, and personal income for an entire economy. It analyzes how much a nation is producing and consuming. GDP is a measure of the total final output of goods and services produced in a country over a year. Disposable personal income refers to money available for individuals or populations to spend or save after taxes. There are debates around using GDP as the sole measure and alternatives like the Genuine Progress Indicator have been proposed.

1. Measuring the
Aggregate Economy

2. National Income Accounting
- A set of meaning for measuring economic activity
in the aggregate economy, that is, the entire
economy.
- Provides a way of measuring total production
broken down into sub-aggregates such as
consumption, investment, and personal income;
and defines the relationship among these sub-
aggregates to analyze how much the nation is
producing and consuming.

3. National Income
Accounting
Purpose:
To obtain some measure of the
performance of the aggregate
economy.

5. GNP
The total final output of citizens
and businesses of an economy
in a one year period

9. Disposable Personal Income
The total amount of money available
for an individual or population to
spend or save after taxes have been
paid. As an economic measure it is
abbreviated DPI.
(http://dictionary.reference.com/)

17. Rise and fall of GDP

21. 3 Ways to Calculate GDP
• Expenditure Method
(expenses)
• Income Method (earnings)
• Value Added

23. Value Added
The enhancement a company gives its
product or service before offering the
product to customers.
Value added is used to describe instances where a firm
takes a product that may be considered a homogeneous
product, with few differences (if any) from that of a
competitor, and provides potential customers with a
feature or add-on that gives it a greater sense of value.

24. A value add can either increase the
product's price or value
For example, offering one year of free support
on a new computer would be a value-added
feature. Additionally, individuals can bring value
add to services that they perform, such as
bringing advanced financial modeling skills to a
position in which the hiring manager may not
have foreseen the need for such skills.

31. What’s wrong with GDP?
1)GDP treats crime, divorce and natural disasters as
economic gain.
2)GDP ignores the non-market economy of household
and community.
3)GDP treats the depletion of natural capital as income.
4)GDP increases with polluting
activities and then again with
clean-ups.
5)GDP takes no account of
income distribution.

32. Genuine Progress Indicator

34. SOURCES:
https://google.com.ph/
http://www.investopedia.com/terms/v/valueadded
http://grizzly.la.psu.edu/~bickes/nia.pdf
http://beta.tutor2u.net/economics/reference/measuring-national-income
http://www.econlib.org/library/Enc/NationalIncomeAccounts.html
http://www.sustainwellbeing.net/gpi.html
http://www.slideshare.net/mariethereza/report-in-economics-chapter-
10national-income-accounting
http://mospi.nic.in/Mospi_New/upload/SYB2014/CH-3-
NATIONAL%20PRODUCT/National%20Accounts%20Statistics.pdf