National Income Accounting


DEFINITION of 'National Income Accounting'

A term used in economics to refer to the bookkeeping system that a national government uses to measure the level of the country's economic activity in a given time period. National income accounting records the level of activity in accounts such as total revenues earned by domestic corporations, wages paid to foreign and domestic workers, and the amount spent on sales and income taxes by corporations and individuals residing in the country.


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BREAKING DOWN 'National Income Accounting'

National income accounting provides economists and statisticians with detailed information that can be used to track the health of an economy and to forecast future growth and development. Although national income accounting is not an exact science, it provides useful insight into how well an economy is functioning, and where monies are being generated and spent.

Some of the metrics calculated by using national income accounting include gross domestic product (GDP), gross national product (GNP) and gross national income (GNI).

  1. Gross Domestic Product - GDP

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  3. Economic Conditions

    The state of the economy in a country or region. Economic conditions ...
  4. Capital Formation

    A term used to describe net capital accumulation during an accounting ...
  5. Gross National Product - GNP

    Gross National Product (or GNP) is an economic statistic that ...
  6. Macroeconomics

    The field of economics that studies the behavior of the aggregate ...
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