National Income Accounting is one of the most important chapters in class 12 Economics. This chapter covers various concepts – final goods, intermediate goods, consumption goods, capital goods, investment – fixed investment & inventory investment, gross investment, net investment, stock, flow, depreciation, money flow, real flow, condition for equilibrium in four sector economy, normal residents of a nation, domestic territory of a nation, factor incomes, transfer payment, value added, planned change in inventories, unplanned change, final expenditure, national income, private income, personal income, national GDP, real GDP.
Frequently asked Questions on CBSE Class 12 Macroeconomics Notes Chapter 2: National Income Accounting
What is ‘Real GDP’?
Real GDP tracks the total value of goods and services calculating the quantities but using constant prices that are adjusted for inflation.
What is ‘Gross investment’?
Gross investment is the total amount that the economy spends on new capital.
What is ‘Stock’?
A stock is a security that represents the ownership of a fraction of a corporation.