Keeping Track of Growth: The National Accounts

In This Chapter

  • National income accounting: a measure of the level of economic activity in a given time period
  • How money flows through the economy
  • A detailed look at the gross domestic product
  • How to calculate the GDP

If you were in the market to buy a business, the first thing you would do is examine its accounting books. You would want to know its activity, sales, inventory, assets and liabilities, overhead, and other factors that would tell you whether the business was healthy. The same principal is applied to evaluating an economy. The flows of money, goods, and services from one ...

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