Publisher's Synopsis
The national income accounting measurement is one good method to help any development countries to research whether what issues are their weaknesses or strengths is order to improve their economic development challenge. The central concept in national accouting is to measure the total output of products or services of the country's economy over a given time period.The measure is known or gross domestic product (GDP). Output is produced by employing various factors of production ( mainly labor and captial), and the revenue from sale of output of used to make payments to these factors of production. The value of output is identified, to the value of income paidout, or what is known as national income. Since the output produced is sold ( or added to stocks), the value of output is also equal to the value of expenditure.Hence, GDP can bre regarded as the value of output produced ( appregate supply), the total value of expenditure on output ( aggregate demand) or the total value of income in producing the output (real income). So, any developing countries can find whether how much or amout different industries value of output produced from and the real aggregate demand from consumers for different industries' products sale number or services demand in order find whether what factors cause the kind of industry's total GDP product sale number and real income reduction amount. For example, last year, the developing country's cloth industry sale number has 600,000 pieces and real GDP income has US$5 million. But, this year, its cloth industry sale number has 400,000 pieces and real GDP income has US$ 2 million. Hence, the developing countries can know its current year overall cloth industry sale number and GDP real income must reduce. Then, this country can attempt to find any factors had influenced itself cloth industry why this country itself cloth buyers number and their wearing demand has reduced. the reasons may include overall cloths price is exceed the normal price level or too high to compare its other foreign cloth sellers ( overall local cloths price is exceed foreign cloth sellers' price extremely, or overall cloth fashion is not update or not attractive or quality is poor, or import cloth material producing price is too high to cause overall cloth sellers' cloth sale prices are needed to rise in order to earn balance profit or avoid reducing profit, or this developing country's cloth sellers' loyalties or brands are not famous to influence overall local cloth buyers know to choose to buy in itself country. Hence, this developing country can attempt to apply macroeconomic behavioral method to find whether what it/are the main factor(s) to cause its overall cloth industry's real GDP income and sale number is influenced to fall down suddenly in this year.This macroeconomic country income measurement method can also measure why or what factors cause its any industries' overall supply and demand imbalance problem existence or cause. The reader will notice that the aggregate supply curve (AS) is drawn with an upward slope from left or right. So that at higher price levels more output is provided obviously, there will be a point when, given fixed amount of captial, labor and technology, output can not be increased in the short term. This represents the full employment level, and at this point, the aggregrate suply curve will become vertical. The aggregate demand cuve simply shows the relationship between the total amount of products and services consumers desire and the price level. For one developing country's overall computer industry example, if it had overall aggregate supply of computer manufacturing number is one million pieces last year, but this year, it's aggregate supply of computer supply of computer manufacturing number is only five hundred thousand pieces. Hence, its overall computer aggregate manufacturing number fell down half pieces in this year.
