National Income Accounting

National Income Accounting is a way to measure the economic activity of a nation. However, it is quite a bit complex in nature as the data required to measure different components are not directly available. The proxies used, therefore, needs to be understood properly in order to understand the pros and con of its numbers. In addition, in order to understand the working of the macroeconomy, it becomes important to understand the way to read this account and by what its term means. With this in mind, here I provide a brief of a very interesting book titled National Income Visualized by Arthur O. Dahlberg, Columbia University Press, 1956. The simplistic language it uses along with the diagram really captivated me to the content and was an invaluable addition to the curious portion of my mind.

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