Identify the correct statement.
a. National income accounting measures only the flow of output between different sectors of an economy.
b. National income accounting summarizes the level of production in an economy over a decade.
c. National income accounting explains diagrammatically the flow of goods and services and of money expenditures (income).
d. National income accounting summarizes and categorizes the productive activity in an economy over a year.
e. National income accounting measures the total money supply in an economy.
Question 2
National income accounting can best be characterized as:
a. a set of rules used to summarize economic activity over a given period of time.
b. a method for comparing different political systems.
c. a microeconomic model of the economy used by the Federal Reserve bank.
d. a statistical measure of the income received by consumers as opposed to businesses.
e. a standardized economic report authored by politicians.
Relationship between Income Inequality and the Desired Tax Rate