This presentation includes the definition of National Income Accounting, it also covers Gross Domestic Products including: types, difference between nominal and real GDP and it also covers the other measure of output and income :)

1. National Income
Accounting
Karl S. Olimpo

2. National Income Accounting
• Is the process of counting the value of the flow between
sectors and then summoning them to find the total
value of the economic activity in the company.
• Measures the output of an entire economy as well as the
flow of the sectors.
• It summarizes the level of production in an economy
over a specific period of time.

4. Gross Domestic Product
• It is the market value of all the final goods and
services produce in a year within a country’s
boarders
– Market Value
– Final Goods and Services
– Produced in a year

6. GDP as Output
Business Firms
$ 11, 102 ( 75%)
Government
$ 1, 802 ( 12%)
Households
$ 1, 840 ( 12%)
The GDP is the measure
of the market value of
nation’s total output in a
year.
4 Sector of Economy
1.Household
2.Business
3.Government
4.International Sector

7. GDP as Expenditures
GDP in terms of what
each sectors pays for
the goods and services
that it purchases
• Consumption: The expenses of it’s
household
• Investment: It is spending on capital
Goods that will be used to produce
other goods and services
2 Components of Total Spending
1. Government Spending
2. Net Exports
Consumption
$ 103. 65 (70%)
Expenses
$ 19.2 (13%)
Government
$30.22 (21%)
Net Export
-5.45 (-4%)

8. GDP as an Income
Income gained by Factor
Production is classified by:
1. Wages
2. Interest
3. Rent
4. Profit
Wages
$ 8,401 (55%)
Rent 304 (2%)
Indirect Business Taxes
$1,061 (7%)
Indirect Interest 905 (6%)
Capital Consumption
Allowance $ 1,872 (13%)
Corporate Profits $ 1, 258 (9%)
Net Factor Income from Abroad
$133 (1%)
Proprietor's Income $1, 060 (7%)

9. Other Measure of Output and
Income
1. Gross National Product
2. Net National Product
3. National Income
4. Personal Income
5. Disposable Personal Income

10. Real and Nominal Measures
1. Nominal GDP
- measures output in terms of its
current dollar value
2. Real GDP
- It is adjusted for changing price levels

11. Price Index
- it is the measure of the average level of prices in an
economy; it shows how prices, on average, have
changed.
1. Base Year
2. Types of Price Indexes
A.GDP Price Index
B. Consumer Price Index (CPI)
C.Producer Price Index (PPI)