Week 2 Essays - Week 2 essay What is the purpose of national income accounting Explain The inflationary and deflationary pressure in the economy is

Week 2 Essays - Week 2 essay What is the purpose of...

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Week 2 essay What is the purpose of national income accounting? Explain. The inflationary and deflationary pressure in the economy is figured out through national income accounting. It also measures the welfare of the people in a country. With this information it helps us compare the standard living of different countries or the standard living within 1 country. It also shows the gross income, output, consumption, savings and many more, with those variables it helps you figure out so many things within an economy that would not be possible if we did not have income accounting. That is the purpose of having national income accounting. Explain why the value of an economy's output statistically matches its income. An economy's output matches its income because everything that is produced is sold even if the selling is in the case of inventory. Since the amount of money the consumer’s pay out of the economy’s output is received by the sellers as income. That is why they statistically match.

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