1. HOW IS NATIONAL INCOME MEASURED?
1.1. OUTPUT METHOD
1.1.1. MEASURES THE ACTUAL VALUE OF THE GOODS & SERVICES PRODUCED
1.1.1.1. SUMMING ALL THE VALUES ADDED BY ALL THE FIRMS IN AN ECONOMY
1.2. INCOME METHOD
1.2.1. MEASURES THE VALUE OF ALL INCOMES EARNED IN AN ECONOMY
1.3. EXPENDITURE METHOD
1.3.1. MEASURES THE VALUE OF ALL SPENDING IN AN ECONOMY
1.3.1.1. SUMMING ALL SPENDING IN DIFFERENT SECTORS IN ECONOMY
1.3.1.1.1. SPENDING BY HOUSEHOLDS, (C)
1.3.1.1.2. SPENDING BY FIRMS, (I)
1.3.1.1.3. SPENDING BY GOVERNMENTS, (G)
1.3.1.1.4. SPENDING BY FOREIGNERS, (X-M)
2. GDP&GNP/GNI
2.1. GROSS DOMESTIC PRODUCT(GDP)
2.1.1. TOTAL VALUE OF ALL FINAL GOODS & SERVICES PRODUCED IN AN ECONOMY IN A YEAR
2.1.1.1. GDP=C+I+G+(X-M)
2.1.2. TOTAL OF ALL ECONOMIC ACTIVITY IN A COUNTRY REGARDLESS WHO OWNS THE ASSETS
2.2. GROSS NATIONAL PRODUCT(GNP)/GROSS NATIONAL INCOME(GNI)
2.2.1. TOTAL INCOME THAT IS EARNED BY A COUNTRY'S FACTOR OF PRODUCTION REGARDLESS WHERE THE ASSETS ARE LOCATED
2.2.2. GNI = GDP + NET PROPERTY INCOME FROM ABROAD
2.3. NET NATIONAL INCOME(NNI)
2.3.1. NNI= GNI - DEPRECIATION
2.3.1.1. DEPRECIATION OF CAPITAL OR CAPITAL CONSUMPTION OCCUR DUE TO WEAR & TEAR OF THE CAPITAL EQUIPMENT
3. GDP PER CAPITA
3.1. GDP PER CAPITA=TOTAL GDP/SIZE OF POPULATION
3.2. TO DETERMINE THE LIVING STANDARD OF CITIZEN IN THAT COUNTRY
4. NOMINAL GDP & REAL GDP
4.1. NOMINAL GDP IS THE VALUE AT CURRENT PRICES
4.2. REAL GDP IS THE VALUE OF NOMINAL GDP ADJUSTED FOR INFLATION USING GDP INFLATOR
4.3. REAL GDP=NOMINAL GDP ADJUSTED FOR INFLATION
5. 5 MAIN MACROECONOMIC OBJECTIVES
5.1. STEADY RATE OF INCREASE IN NATIONAL OUTPUT
5.2. LOW LEVEL OF UNEMPLOYMENT
5.3. LOW INFLATION
5.4. FAVORABLE BALANCE OF PAYMENT POSITION
5.5. EQUITABLE DISTRIBUTION OF INCOME
6. CIRCULAR FLOW OF INCOME MODEL OF ECONOMY
6.1. FACTOR OF PRODUCTION & PAYMENT TO THE FACTOR
6.1.1. LABOUR
6.1.1.1. WAGES
6.1.2. LAND
6.1.2.1. RENT
6.1.3. CAPITAL
6.1.3.1. INTEREST
6.1.4. ENTREPRENEURSHIP
6.1.4.1. PROFITS
6.2. LEAKAGES & INJECTIONS
6.2.1. LEAKAGES
6.2.1.1. SAVINGS
6.2.1.2. TAX
6.2.1.3. IMPORT
6.2.2. INJECTIONS
6.2.2.1. INVESTMENT
6.2.2.2. GOVERNMENT
6.2.2.3. EXPORT