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National Income Accounting & Unemployment

1) State the purposes of national income accounting. List the components of GDP in the output (expenditures) approach and in the income approach.

2) Identify the economic costs of unemployment and the groups that bear unusually heavy unemployment burdens.

Response is 1,108 words

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Solution Preview

In order for you to answer question one, the first thing you may want to do is define what is national income and national income accounting; then state what are the purposes of national income accounting. After you have done this then you can go ahead and list the components of Gross Domestic Product in the output or expenditure approach and in the income approach.

What is National Income?

National income measures the money value of the flow of output of goods and services produced within an economy over a period of time. (Source: ...

Solution Summary

This solution provides you with an in depth explanation of the purposes and/uses of national income accounting. It also provides you with information related to the two ways in which GDP may be calculated and the components of each. To conclude the solution a list of economic costs of unemployment is given; along with links where information also related to the issue of unemployment and its cost may be found. The solution is adequately referenced.