National Income And Product Accounts Flashcards, test questions and answers

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What is National Income And Product Accounts?

The National Income and Product Accounts (NIPAs) are a set of accounts maintained by the Bureau of Economic Analysis (BEA) that measure the economic output, income and expenditure of the United States. NIPAs provide a comprehensive view of how resources are used in an economy. They measure the levels of production, employment, investment, consumption and savings in an economy. The accounts also provide detailed information on national income, gross domestic product (GDP), gross domestic income (GDI), personal income and disposable personal income.NIPAs consist of three major components: the flow-of-funds accounts, which track financial transactions between sectors; production and income accounts which measure output by sector; and expenditure accounts which measure spending by type of good or service. The NIPAs also include various capital asset account measures such as net capital formation, investment flows for both tangible assets such as buildings and machinery as well as intangible assets such as R services or software development. All these components are used to calculate GDP for each year, quarter or month depending on what is being measured. In addition to tracking production levels across all sectors in an economy, NIPAs also track labor market activity through measures such as total employment level, average weekly wages paid to workers etc., offering an insight into how much purchasing power households have available to them over time.