... in order to determine an economy's state of well-being, performance as compared to other countries, and a comparison of production levels at regular intervals by national income accountants (McConnell and Brue 116). National income accounting also aids decision-making by monetary authorities in a country. UNDERSTANDING NATIONAL INCOME STATISTICS There are basic components of national income accounts that have to be combined in order to reach decisions such as future forecasts of an economy's performance. One primary component is an economy's total market value of all final goods and services produced within a country's borders in a given year; the Gross Domestic Product (GDP) (McConnell and Brue 117). This national statistic is derived to help economists understand the dynamics of resource suppliers and firms relations on the one hand, and an economy's overall performance on the other. This is achieved by putting together essential components that are vital for national income accountants to ...

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