1. Input-output Statistics and Analysis National accounts basics
THE CONTRACTOR IS ACTING UNDER A FRAMEWORK CONTRACT CONCLUDED WITH THE COMMISSION

2. National accounts basics
What is the economy?
The economy is a system where institutions and people combine together through markets, to produce and consume goods and services, using money as the medium of exchange

3. National accounts basics
Who are the “institutions and people”?
Government
Households
Business companies
Rest of the World

4. National accounts basics
What is a market?
A market is where
suppliers can freely sell their goods at a price of their choosing
Purchasers can choose to buy from a range of products and prices

5. National accounts basics
Production of goods and services
For example
Cars
Insurance
Banking
Transport
Construction

6. National accounts basics
Money helps the operation of an effective market by offering a medium of exchange
Borrowing and lending helps the exchange by squaring short-term needs with long-term purchasing power

7. National accounts basics
What do we measure in the economy?
examples
Economic growth
Consumer spending
Government debt
Investment
Prices
Taxes
Profits

8. National accounts basics
Drawing a picture of the economy
Players
Transactions
Money flows – direction of arrows
Exchanges
Transfers

9. National accounts basics

10. National accounts basics
Time of recording - cash and accruals basis
Market and non-market transactions
Imputations
GDP – three measures
Depreciation
GNI vs GDP
Change in inventories

11. National accounts basics
Mathematical version of the picture
Rules of transactions
All transactions record equal value to both parties, at same point in time
What goes in must come out
OR accounts must balance