Describe the significance of National income Accounting.
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Answer:
National income accounting is a bookkeeping system that a government uses to measure the level of the country's economic activity in a given time period. Accounting records of this nature include data regarding total revenues earned by domestic corporations, wages paid to foreign and domestic workers, and the amount spent on sales and income taxes by corporations and individuals residing in the country.
Although national income accounting is not an exact science, it provides useful insight into how well an economy is functioning, and where monies are being generated and spent. When combined with information regarding the associated population, data regarding per capita income and growth can be examined over a period of time.
since this goods are measured in different physical units it is not possible to add them together. thus we cannot state national income is so many millions of metres of cloth. therefore there is no way accept to reduce them to a common measure this common measure is money
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