Macroeconomic

Chapter 2 : National Accounts

A set of rule and definition for measuring economics activity of the aggregate economy.

Way to calculate GDP

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Gross Domestic product (GDP)

Total market value of all final goods and services produced in an economy in one year period.

Gross National Product (GNP)

The aggregate final output of citizens and business of an economy in one year.

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Reflection

From this chapter, I know that National Income are refer to the quality of living of a country. Gross domestic product(GDP) only measures final output to avoid double and triple counting. Two ways that I learned to calculate GDP is calculate final sales approach and value added approach. 

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