National Accounting And Gdp

National Accounting and GDP

Introduction

National accounting is the instrument that is measured by the health status of the national economy in the different sectors, primary, secondary and tertiary, this is achieved by collecting the economic activities formed by homes, companies and the government, to which it will help to make more successful decisions.

How are national accounting calculated?, The administrative records that give us information about the factors of production, land, work and capital and on the other hand are taken into account and on the other hand the censuses and surveys that inform us by productive agents, families are those consumed by the goods and services, companies are those that decide what goods and services produce, for whom? and because?, and the government that through taxes and regulations regulate economic activity.

“The national accounts have as its main objective to present in a summary and coherent way, the production, consumption and accumulation flows that occur in a country, during a certain period of time. Likewise, national accounts reflect how it occurs (cost structure) and the structural changes that can be given in the economy (for example a relevant change in production technology).”(Roldan, 2019)

Developing

National accounting is the systematic record of the activity and economic structure of a country, and allows us to know the structure and in the way in which the economy is operating, what occurs?, When it occurs?, What is produced for?, How much is consumed?, How much does it save?, And how much is invested?, The objectives are: increase production and services to distribute them in the population and their correct combination of productive factors.

“The objective of national accounting is to know in a timely manner, the behavior of macroeconomic variables and have a global vision of the economic situation of a country in a certain period and be able to act on it to avoid crisis or reduce the effects of the same; or, for the programming of the activities of the different economic sectors and to evaluate their effect on the future ”(Elizalde, 2012, P. 48).

“Nominal production of the nominal product is also called production at current prices or at real market prices of that year, accounting is carried out, it is obtained by adding in monetary terms everything generated by the different branches of production, this is value Current ”(Elizalde, 2012, P. 48).

“Real production to be able to appreciate the changes in production and eliminate variations in prices is needed of a real magnitude that reflects the effective physical increase of production once the prices fluctuations are eliminated. Real production is also called production at constant prices. To calculate the value of real production, the product must be defined, which consists of dividing the product at current prices between the general price index of the year that is studied, based on a year ”(Elizalde, 2012, P. 49).

“Potential production is considered to be the maximum amount of production that can be obtained given technology, capital, work, existing resources and the administrative capacity with which it is counted. This could be achieved as long as the rational use of resources is planned and there are no waste. This implies that production is carried out according to the needs of a growing population, this leads to a rational use of all resources, including labor ”(Elizalde, 2012, p. fifty).

National income

National income is the sum for a year during all individual income of the nationals of a country, in order to calculate national income, it is necessary to take into account the national income of the country, this without them obtaining their income inside or outside The borders of the country, therefore, are not taken into account, the income of foreigners in the country.

The elements that contribute to national income are salaries and salaries, which the workers receive, and as the good that the owners of the companies and capital receive, and the returns received by the owners of the land, when speaking of national income , it is not correct to affirm that when this increases the income of all the inhabitants of the country increases, the increase or reduction in the income of the inhabitants, it clearly affects national income, however, there is a fundamental aspect with income with the income with the income which is decisive in well -being in the inhabitants of a nation the distribution of this.

This issue is a fundamental related point between social and economic policy in governments in different countries, when national income increases, economic stability and progress are generated, on the contrary, when it is reduced, it loses economic stability, even so, it is not Synonym of progress that increases national income, if after all this income is obtained by a few inhabitants of the population, so that there is an improvement in the well -being of the inhabitants in general, the personal income of the majority of the population must improve, or that perceived by few must be redistributed to have more equitable results.

It includes:

• Workers’ salaries
• Income, interests, profits and dividends of capital
• Earth income

conclusion

The main objective is to estimate the gross domestic product, which is the economic value that everything that occurs within the country by all national and foreign companies operating within the national territory, is calculated taking into account the expense and income of households, companies and the government.

Macroeconomic theory studies the functioning of the economy as a whole. Which allows to know the functioning and development of the different economic sectors.

References

1. AND. Elizalde (2012) Macroeconomics. Mexico: recovered from http: // www.UPG.MX/WP-Content/Uploads/2015/10/Book-18-Macroeconomia.PDF
2. Paula, r. (2019). National accounts. Economipedia. Recovered from https: // economipedia.com/definitions/accounts.HTML