What is national income how is it calculated write ?
Answers
Net national income is defined as gross domestic product plus net receipts of wages, salaries and property income from abroad, minus the depreciation of fixed capital assets (dwellings, buildings, machinery, transport equipment and physical infrastructure) through wear and tear and obsolescence.
It can be expressed as
NNI = C + I + G + (NX) + net foreign factor income – indirect taxes – manufactured capital depreciation[3]
where:
C = Consumption
I = Investment
G = Government spending
NX = net exports (exports minus imports) = (X – M)
Net national income is defined as gross domestic product plus net receipts of wages, salaries and property income from abroad, minus the depreciation of fixed capital assets (dwellings, buildings, machinery, transport equipment and physical infrastructure) through wear and tear and obsolescence. where: C = Consumption.