National Income and its Measurements:

Macro Economics and its Importance:

The term 'Macro' is derived from the Greek word 'Uakpo' which means large. Macro economics looks at the economy as a whole. Continue reading.

Concepts of National Income:

There are various concepts of national income. These are explained below one by one: Continue reading.

Methods of Computing/Measuring National Income:

There are three methods of measuring national income of a country. They yield the same result. These methods are: Continue reading.

Circular Flow of National Income in a Two Sector Economy:

A simple circular flow model of the macro economics containing two sectors (business and household) and two markets (product and factor) that illustrates the continuous movement of the payments for goods and services between producers and consumers. Continue reading.

Difficulties/Problems in the Measurement of National Income:

According to Kuznets, the measurement of national income is a complicated problem and is beset with the following difficulties. Continue reading.

Determinants of National Income or Factors Affecting the National Income:

There are many determinants or factors which influence the size of the national income. They, in brief, are as follows: Continue reading.

Gross Domestic Product as a Measure of Welfare/Growth/Development:

Gross Domestic product (GDP) is generally considered a best single measure of the value of output produced in the economy. The importance of GDP as a measure of good standard of living or welfare is as under: Continue reading.

Measurement of Gross Domestic Product in Current Price and Constant Price:

The gross domestic product (GDP) is the total market value of all the final goods and services produced within an economy in a given year. Continue reading.