Macroeconomic chapter 2 :National income accounting

National income accounting

– a set of rules and definitions for measuring economic activity in the aggregate economy – that is, in the economy as a whole.

Gross Domestic Product (GDP) is the total market value of all final goods and services produced in an economy in a one-year period.

Gross National Product (GNP) is the aggregate final output of citizens and businesses of an economy in one year.