Accounting Case Study One

|Business Economics GM545 |

| |

|Spring Term 2013 |

| |

|2/10/2013 |

|Project Paper 2 |

• Chapter 15, Question 14 (p.424)

National Income Accounts are a standard source to place estimate or value on the output of goods and services produced within the economy. Economist may utilize this information to determine the flow of the economic growth, decline, or stabilization. The organization of national accounts will account for a more vivid snapshot of the country’s economic activity over a given period of time in history-usually utilizing historical data to determine future activity. The calculations of the national income accounts appear in a variety of forms ranging from: GNP (Gross National Product), GDP (Gross Domestic Product), PI (Personal Income), PDI (Personal Disposable Income), NNI (Net National Income), and NNP (Net National Product) just to name a few and provide an idea of the scope of variables faced when calculating national income. When using the above methods which; involve certain formulas and calculations the outcome can determine the numerical representation or comparison of one nation’s economic activity as compared to another nation’s economic activity.

The above methods using national income accounts can be factored into the use of understanding and calculating particular economic activity and budget planning for public and private sector government agencies and private businesses which engage in the...