National income accounting

National Income Accounting is a system used by governments to measure a country's economic performance. It involves tracking the total value of goods and services produced (Gross Domestic Product, or GDP), income earned by residents, and spending patterns. This helps assess the health of the economy, inform policy decisions, and compare economic activity over time or between countries. Key components include consumption, investment, government spending, and net exports. By understanding these metrics, policymakers can create strategies to foster growth, manage inflation, and improve living standards. It provides vital insights into the economic well-being of a nation.