Use of National Income Statistics for Comparison
Measuring Economic Activity and Illustrating Its Variations
AO3
Syllabus requirement
Use GDP and GNI to compare economic activity across countries and over time. Discuss limitations and distortions.
Assessment objectives
AO3 Synthesis and Evaluation
Summary
This topic shows how national income statistics are used to calculate aggregate output measures such as GDP and net exports. It demonstrates that GDP at market prices is the sum of consumption, investment (gross fixed capital formation), government expenditure and net exports (exports minus imports), and that both goods and services must be included when using national accounts data.