National Income Accounting
A) Introduction National income accounting plays a prominent role in economic theory. While talking about national income somewhere we became little bit in confusion with the term national product. So initially we will find the right point to know about national income and national product first. Both national income and product are flow quantities related to a given time dimension. While national product refers to the flows of final goods and services produced during any given period of time. National income represents the flow of total factors of earning available to purchase the net flow of goods and services in the economy during any given time period, generally one year. It is generally assumed that national income and national product becomes equals only if the market is functioning perfectly. G. Ackley has defined national income considering equivalent to national product as the economy's total current output of goods and services valued at the mark...