Page 43 - DECO402_Macro Economics

Macroeconomic Theory Hitesh Jhanji, Lovely Professional University

Notes Unit-4: Sectorial Accounting

Contents
Objectives
Introduction
4.1 Business Sector
4.2 Private Sector
4.3 The Government Sector
4.4 Foreign or Other Sector
4.5 Gross Saving and Investment Account
4.6 Meaning of Social Accounting or National Income Accounting
4.7 Presentation of Social Accounts
4.8 Social Accounting’s Laws
4.9 Summary
4.10 Keywords
4.11 Review Questions
4.12 Further Readings

Objectives

After studying this unit, students will be able to:

y Know the business sector,
y Understand the private sector,
y Know the government sector,
y Do the study about the foreign and other sector.

Introduction

To present the account of income and expenditure of private sector, at the side of income show the
payment and at the side of expenditure show the payment of borrowing by customer. These both are
not involve in the account national income.

4.1 Business Sector

Within the field of economy are involved the operated firms, single business and joint firms. All
economic activities are involved in the field of saving accounts. After that the total national production
are involves in it. Year 1991-1992 the account of production and income of business sector are clear
following table:

36 LOVELY PROFESSIONAL UNIVERSITY