There Are a Number of Measures of Aggregate Economic Activity,such

question 13

Essay

There are a number of measures of aggregate economic activity,such as GDP,GNP,national income,personal income,and disposable personal income.Each of these measures can be a good indicator depending on the issue under consideration.For each of the following issues,give your reasons for selecting one of the measures just mentioned as the best indicator to use in studying the issue:
a.The proportion of income households save
b.The relative share of earnings going to labour versus capital
c.The total output of new final goods and services.

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Definitions:

Prepaid Interest

Interest that is paid in advance of the period to which it applies, often relating to mortgage or loan agreements.

Worksheet

An informal accounting document used internally to assemble, adjust, and sort various account balances for the preparation of financial statements.

Trial Balance

A bookkeeping report that lists the balances of all ledgers accounts in order to check the mathematical accuracy of the accounts' balances.

Adjusted Trial Balance

A list of all accounts and their balances after adjustments have been made for errors, accruals, and deferrals in the accounting period.