{"id":38754,"date":"2019-06-07T11:20:40","date_gmt":"2019-06-07T05:50:40","guid":{"rendered":"https:\/\/www.oliveboard.in\/blog\/?p=38754"},"modified":"2019-10-09T14:56:38","modified_gmt":"2019-10-09T09:26:38","slug":"national-income-accounting-rbi-grade-b-study-notes","status":"publish","type":"post","link":"https:\/\/www.oliveboard.in\/blog\/national-income-accounting-rbi-grade-b-study-notes\/","title":{"rendered":"National Income Accounting – GDP Calculation & Per Capita Income"},"content":{"rendered":"

Reserve Bank of India<\/strong> being the central bank of the country<\/strong> is a great organisation to work for. Every year Lakhs of aspirants apply for the RBI Grade B posts<\/strong> as it offers great career opportunities<\/strong> as well as impressive perks & allowances to its officers<\/strong>. The Grade B<\/a><\/strong><\/span> recruitment notification is expected to be announced in the month of June-July 2019 most probably. It is highly advisable to start with your preparations from now on<\/strong> itself so that when you are suddenly notified of the recruitment notification, you have already covered a prominent portion of the syllabus. The Grade B Exam is conducted in three stages namely Phase I<\/span><\/strong><\/a>, Phase 2<\/strong><\/a><\/span> and the Interview round<\/strong>.<\/span><\/p>\n

Toppers of the exam have always suggested to carry on the preparations and study for both Phase 1<\/a><\/span> and Phase 2<\/a><\/span> simultaneously<\/strong> because the syllabus of Phase 2 of RBI Grade B is vast and requires thorough knowledge and persistence in studies. The subjects asked in the Phase 2 Exam are Economics & Social Issues<\/strong>, Finance & Management<\/strong> and Descriptive English<\/strong>. So to give you a helping hand in your studies for the Grade B Exam, we at Oliveboard would be providing you study notes<\/strong> on important topics from the syllabus of Phase 2<\/strong>. In this blog, we will cover the topic of\u00a0National Income Accounting – RBI Grade B Study Notes.<\/strong><\/p>\n

Take a Free Oliveboard Mock Test for RBI Grade B Prelims<\/strong><\/a><\/span><\/p>\n

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National Income Accounting – RBI Grade B Study Notes<\/strong><\/span><\/h2>\n

National Income is one of the most important topics for RBI Grade B or for any other competitive Examination. National Income finds its importance of the various stakeholders is it IMF, World Bank or foreign investors or governments.<\/span><\/p>\n

National Income<\/strong><\/span><\/h3>\n

Economic Growth –<\/strong> Every country measures its growth and performance using certain indicators and mechanisms. Economic Growth is more of a quantitative concept<\/strong> where the numbers obtained are compared with the previous ones or with the numbers of another country. Economic Growth is the capacity of a nation to produce Goods and Services in a year.<\/strong><\/span><\/p>\n

Economic Development –<\/strong> Development differs from Growth. Development is a qualitative concept whereas Growth is a quantitative concept.<\/strong><\/span><\/p>\n

Take a Free Oliveboard Mock Test for RBI Grade B Prelims<\/strong><\/a><\/span><\/p>\n

National Income is one of the most followed criteria among almost all countries in the world.<\/span>
\nAs an Income of a person or entity can be measured the Income of a Country can also be calculated although it can be more difficult or complex.<\/span><\/p>\n

National Income is measured in 3 ways.<\/strong><\/span><\/p>\n

    \n
  1. Product\/Output method<\/strong><\/span><\/li>\n
  2. Income Method<\/strong><\/span><\/li>\n
  3. Expenditure Method<\/strong><\/span><\/li>\n<\/ol>\n

    Read a brief introduction about all the three.<\/span><\/p>\n

    1. Product\/ Output Method<\/strong><\/span><\/h4>\n

    Here the final value of total goods and services produced in a year are calculated<\/strong>. The value is calculated at market prices.<\/strong><\/span><\/p>\n

    2. Income Method<\/strong><\/span><\/h4>\n

    The flow of factor incomes<\/strong> is calculated here. The factors of production include Land, Labour, Capital and entrepreneurship<\/strong>.<\/span><\/p>\n

    3. Expenditure Method<\/strong><\/span><\/h4>\n

    The flow of total expenditure is calculated here. It includes Private Expenditure<\/strong>, Government Expenditure<\/strong>, Gross Capital Formation<\/strong> and Net Exports<\/strong>.<\/span><\/p>\n

    Take a Free Oliveboard Mock Test for RBI Grade B Prelims<\/strong><\/a><\/span><\/p>\n

    Some Important Definitions<\/strong><\/span><\/h3>\n

    Four ways have been developed to measure National Income GDP, NDP, GNP, NNP. Through product method.<\/span><\/p>\n

      \n
    1. Gross Domestic Product<\/strong><\/span><\/li>\n
    2. Net Domestic Product<\/strong><\/span><\/li>\n
    3. Gross National Product<\/strong><\/span><\/li>\n
    4. Net National Product<\/strong><\/span><\/li>\n<\/ol>\n

      1. Gross Domestic Product<\/strong><\/span><\/h4>\n

      It is the monetary value of the final goods and services produced in the territory of the country in a year.<\/strong> \u00a0It is used by the IMF and World Bank in a comparative analysis of its member Nations.<\/span><\/p>\n

      It is a quantitative concept and here one year in India is calculated from April to March<\/strong>.<\/span><\/p>\n

      2. Net Domestic Product<\/strong><\/span><\/h4>\n

      NDP is the monetary value of the final goods and services produced in the territory of the country in a year minus depreciation. It considers Depreciation. It is the net form of GDP.<\/span><\/p>\n