National accounts or national account systems (NAS) are the implementation of complete and consistent accounting techniques for measuring the economic activity of a nation. These include detailed underlying measures that rely on double-entry accounting. By construction such accounting makes the totals on both sides of an account equal even though they each measure different characteristics, for example production and the income from it. As a method, the subject is termed national accounting or, more generally, social accounting. Stated otherwise, national accounts as systems may be distinguished from the economic data associated with those systems. While sharing many common principles with business accounting, national accounts are based on economic concepts.
National accounting has developed in tandem with macroeconomics from the 1930s with its relation of aggregate demand to total output through interaction of such broad expenditure categories as consumption and investment. Economic data from national accounts are also used for empirical analysis of economic growth and development.
Read more about National Accounts: Scope, Main Components, History
Famous quotes containing the words national and/or accounts:
“Just so before we’re international,
We’re national and act as nationals.”
—Robert Frost (1874–1963)
“No common-place is ever effectually got rid of, except by essentially emptying one’s self of it into a book; for once trapped in a book, then the book can be put into the fire, and all will be well. But they are not always put into the fire; and this accounts for the vast majority of miserable books over those of positive merit.”
—Herman Melville (1819–1891)