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Published byHugh Bond Modified over 8 years ago
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PRESENTED BY - Dr. R. S. Dhankaria Course Director & Principal K.V. Khatkhati. On 27 th September 2010 at KV Dimapur related with three days workshop for PGT Economics.
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National Income Accounts
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The three methods of national income accounting
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The circular flow of national income and expenditure
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(1) Production (2) Incomes (3) Expenditure
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Factor payments Factor payments Consumption of domestically produced goods and services (C d ) Consumption of domestically produced goods and services (C d ) The circular flow of income Firms Households
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Factor payments Factor payments Consumption of domestically produced goods and services (C d ) Consumption of domestically produced goods and services (C d ) Investment (I) Government expenditure (G) Government expenditure (G) Export expenditure (X) Export expenditure (X) BANKS, etc Net saving (S) Net saving (S) GOV. Net taxes (T) Net taxes (T) ABROAD Import expenditure (M) Import expenditure (M) The circular flow of income WITHDRAWALS INJECTIONS
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Factor payments Factor payments Consumption of domestically produced goods and services (C d ) Consumption of domestically produced goods and services (C d ) Investment (I) Government expenditure (G) Government expenditure (G) Export expenditure (X) Export expenditure (X) BANKS, etc Net saving (S) Net saving (S) GOV. Net taxes (T) Net taxes (T) ABROAD Import expenditure (M) Import expenditure (M) The circular flow of income WITHDRAWALS INJECTIONS
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Withdrawals net saving net taxes import expenditure Injections investment government expenditure export expenditure
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GDP@MP NDP@MP GDP@FC NDP@FC DOMESTIC INCOME GNP@MP NNP@MP GNP@FC NNP@FC NATIONAL INCOME
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Methods of national income accounting (a) The product approach /Value Added Method
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Methods of national income accounting (b) The income approach
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Methods of national income accounting (c) The expenditure approach
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Income from Domestic Product Accruing to Private Sector + Interest on National Debt + Current Transfer of Government + Current Transfer of Rest of the World + Net Factor Income from Abroad (NFIA) = Private Income
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Private Income (-) Corporate Saving / Undistributed Profit (-) Corporate Tax / Corporate Profit Tax = Personal Income
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(-) Personal Direct Taxes (-) Miscellaneous Government Receipt = Personal Disposal Income = Consumption + Savings
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GNP@MP + Net Current Transfer from Rest of the World = Gross National Disposal Income
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NNP @MP + Net Current Transfer from Rest of the World = Net National Disposal Income
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