Macroeconomics

Running Head : MACROECONOMICS

National Income Abstract

National income is the measure of a country 's production it measures the prosperity of a country . It is crucial for the national income to be measured accurately some methods used are the product method , income method and expenditure method . The expenditure model leads us to the circular flow of income , which talks about the leakages and injections into the economy and evaluates each component very closely . The components are consumption , government expenditure investments , savings , imports , exports and taxes . Linking all these together gives

a clear picture of a country 's economy

National Income

Introduction

The key macroeconomic variable is the level of economy , which is also known as the national income . More simply , it is the money earned by the economy by selling its National income is basically the Gross Domestic Product of a country which is the market value of all the goods produced in an economy in a given period of time , usually one year . The need for the measurement of national income emerges from the requirement of making economic models conducting researches and working on hypothesis models . In to make an economy thrive , it is important to predict future changes so that preventive actions can be taken before hand . The measurement of national income also helps the economists to determine the rate of economic growth by comparing the growth overtime within a country also , to compare the growth between two...