Meaning of National Income In common parlance, National Income means the total money value of all final goods and services produced in a country during a particular period of time (one year). Value of Goods & Services Country Produced In a Year N a t i o n a l I n c o m e - - National Income . . .
Personal Income . . . Disposable Income .
. . Per capita Income . .
. Real Income . . GDP deflator .
. . Gross Domestic Product (GDP) GDP is the total market value of final goods and services produced within the country during a year. This is calculated at market prices and is known as GDP at market prices.
GDP by expenditure method at market prices = C + I + G + (X – M) Where C – consumption goods; I – Investment goods; G – Government purchases; X – Exports; M – Imports (X – M) is net export which can be positive or negative. a) Net Domestic Product (NDP) NDP is the value of net output of the economy during the year. Some of the country’s capital equipment wears out or becomes outdated each year during the production process. Thus Net Domestic Product = GDP - Depreciation.
. . Gross National Product (GNP) GNP is the total measure of the flow of final goods and services at market value resulting from current production in a country during a year, including net