This simple exercise will reinforce the definitions of the national income accounts. In addition, it will give students an opportunity to further comprehend the connection of each of the income accounts to each other.

Divide the class into six groups and assign each group one of the national income accounts defined in sections 1.a and 1.b. (GDP, GNP, NNP, NI, PI, and DPI) The groups are given five minutes to study their account. Then each group in turn states what its account measures. For instance, the first group to speak will tell the class what GDP measures. Each successive group will define its measure and tell how it differs from the prior measure. For example, the second group will state what GNP measures and how GNP differs from GDP, followed by the NNP group, NI group, PI group, and finally the DPI group.

Students should have no problem with the basic definitions of each of the national income accounts, but the instructor may have to prompt students to recognize the connection between the accounts.