Gm545 Unit 5 Research Paper

Lindsey Mathis

Business Economics
Business Economics GM545
March/April 2013 [e-mail] Chapter 15 Question 6

National Income Accounting refers to the bookkeeping system that a national government uses to measure the level of the country’s economic activity in a given country’s economic activity in a given time period. It provides economies with detailed information that can be used to track the health of an economy and to forecast the future growth and development. It also provides insight into how well an economy is functioning, and when the money being generated and spent. There are various forms of national income such as Gross Domestic Product, Gross National…show more content…
Hyperinflation is a high rate of inflation when inflation has gotten out of control. Hyperinflation does cause financial harm to a nation. Life savings can be erased in a matter of a few days. Money can become easily worthless giving no one any incentive to work. It can also caused people to revolt against their governments, fight among each other, or even go to war with a neighbor. Hyperinflation can wipe out the middle class by destroying the value of cash, savings bonds, and other paper instruments. “When a nation’s money supply runs up unchecked, hyperinflation becomes visible and is usually connected to wars, political or social upheavals, aggressive bidding on currency exchanges or currency meltdowns.”(An introduction to Hyperinflation).

Bibliography

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"National Income Accounting." Definition N.p., n.d. Web. 07 Apr.