National Accounts Flashcards
What is national accounts
Provides systematic record of national economic activities
SNA = system of national accounts
What does national accounts comprise of
GDP GVA AND GNP
What are the 3 methods of national accounts
Production method
Expenditure method
Income method
Discuss the production method of national accounts
Value added at each production stage
Known as GDP at basic prices
Discuss the expenditure method of national accounts
Total value of expenditure
Known as GDP at market prices
Discuss income method of national accounts
Total remuneration by owners of factors of production
Known as GDP at factor costs
What are nominal figures
National product at current price
Inflation not taken into account
What are real figures
National product at constant prices
Inflation taken into account
What are market prices
Paid by consumers for goods and services
Including taxes less subsidies
What are basic prices
Initial prices in production of final goods
Before taxes and subsidies
What are factor costs
Amount to be paid for various factors of production used to produce goods and services
