About This Chapter
National Income Accounting Overview - Chapter Summary
Gain full comprehension of the GDP deflator, the components of national income and the circular flow of income by reviewing this national income accounting overview. Our fun lessons developed by top instructors ensure you have a well-rounded understanding of these and other topics, while multiple-choice quizzes give you the opportunity to check how much you've retained of the material. As you navigate this chapter, visit the Dashboard to track your progress and submit any questions about specific lesson topics to our experts. Taking advantage of these resources will enable you to do the following:
- Discuss the uses of national income accounting in economics
- Share the definition and list components of the gross domestic product (GDP)
- Define the gross national product (GNP) and discuss its formula
- Differentiate between nominal GDP and real GDP
- Compare the GDP of the United States with that of other world countries
- Explain the theory of consumption in economics
- Provide the definition of economic output and discuss this concept as it relates to the United States
- Detail components of the Index of Well Being and explain how intangibles contribute to the GDP
1. National Income Accounting in Economics: Definition, Uses & Equation
In this lesson, we will look at national income accounting in economics. We will define it and learn how economists measure it, then we will wrap up with a list of uses for national income accounting and a summary.
2. Gross Domestic Product: Definition and Components
Learn how economists measure the total production of an economy using gross domestic product (GDP). This lesson also outlines the components that make up a GDP. How do we calculate the economic value of a nation?
3. GNP: Definition & Formula
This lesson explores the economic concept known as gross national product, or GNP. We'll discuss the formula for calculating GNP as well as the differences between GNP and the better-known GDP.
4. Gross Domestic Product: Nominal vs. Real GDP
Watch this video and you'll learn the difference between nominal GDP and real GDP with the help of a memorable story about a competition between twin brothers.
5. GDP Deflator: Definition, Formula & Example
In this lesson, we will be discussing the GDP deflator. It's an effective method that is used to measure price changes over time within an economy. We'll go into more depth about the concept and illustrate an example of how it is calculated.
6. What is Consumption in Economics? - Definition & Theory
Learn what consumption is and how you participate every day in this activity. Find out why it is important and what variables drive the theories behind consumption. Discover some common ways to increase consumption.
7. Economic Output: Definition & Overview
Economic output is one of the most important economic measures for a country. In this lesson, you'll learn what economic output is as well as some related concepts.
8. The Circular Flow of Income: Definition & Model
In this lesson, we will look how the circular flow of income works. We will look at key terms, the roles of households and firms, and some exceptions to the model in terms of leakages and injections. A summary and quiz will conclude the lesson.
9. GDP & Quality of Life
This lesson is going to define GDP, intangible assets, and Index of Well-Being. Then, you'll learn how GDP and intangible assets are connected, and why an Index of Well-Being may be superior to GDP in measuring quality of life.
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