The document discusses various methods of measuring a nation's income and economic output, including gross domestic product (GDP), gross national product (GNP), national income, and per capita income. It provides definitions and explanations of GDP components like consumption, investment, government spending, and net exports. Real GDP is distinguished from nominal GDP.

1. Measuring a Nation’s Income 10/10/11 07:22 AM by Dr.Rajesh Patel,Director, nrv mba

6. The Economy’s Income and Expenditure When judging whether the economy is doing well or poorly, it is natural to look at the total income that everyone in the economy is earning. 10/10/11 07:22 AM by Dr.Rajesh Patel,Director, nrv mba

8. The Circular-Flow Diagram Firms Households Market for Factors of Production Market for Goods and Services 10/10/11 07:22 AM by Dr.Rajesh Patel,Director, nrv mba Spending Revenue Wages, rent, and profit Income Goods & Services sold Goods & Services bought Labor, land, and capital Inputs for production

26. What Is Counted in GDP? GDP includes all items produced in the economy and sold legally in markets. 10/10/11 07:22 AM by Dr.Rajesh Patel,Director, nrv mba

32. Real versus Nominal GDP An accurate view of the economy requires adjusting nominal to real GDP by using the GDP deflator. 10/10/11 07:22 AM by Dr.Rajesh Patel,Director, nrv mba

33. Real and Nominal GDP 10/10/11 07:22 AM by Dr.Rajesh Patel,Director, nrv mba

34. Real and Nominal GDP 10/10/11 07:22 AM by Dr.Rajesh Patel,Director, nrv mba

35. Real and Nominal GDP 10/10/11 07:22 AM by Dr.Rajesh Patel,Director, nrv mba

36. Real and Nominal GDP 10/10/11 07:22 AM by Dr.Rajesh Patel,Director, nrv mba

40. Approaches to Measurement of National Income Circular flow of income arises out of the process of activity chain in which: Production creates income ; Income generates spending ; Spending induces production 10/10/11 07:22 AM by Dr.Rajesh Patel,Director, nrv mba