- Subject index
Macroeconomics Simplified explains the intuition behind Keynesian and neoclassical macroeconomics using graphs and simple algebra.
It provides students with a strong conceptual basis for understanding the tension between Keynesian and neoclassical systems that has once again came to the forefront since the 2007–08 financial crisis.
The book shows how theoretical perspectives affect macroeconomic policy choices and proposes a pragmatic approach to policy that is sensitive to prevailing economic conditions. Students of economics and business alike will enjoy its concise and engaging analysis and find the applications and references to the Indian economy helpful.
Chapter 2: The National Accounts
The National Accounts
Macroeconomic models deal with aggregate economic data. Most of these come from the national income and product accounts—usually referred to simply as the ‘national accounts’. Before moving on to the terrain of macroeconomic theory, it is useful to revise some basic national income accounting concepts. This chapter does so with reference to India.
National Income Accounting Concepts
The national accounts estimate the value of output, expenditure and incomes earned in an economy over a specified time period (usually a year). In India, national accounting follows the system adopted by the United Nations. Under this system, three methods are used for the estimation of national product. They are the production (value-added) method, income method and expenditure method. A core principle of national income ...