Question

How to measures of national income.Explain in term of macroeconomics. I read many book and got many different answer. Which one is accurate answer? I'm confusing. Please help me.

I found this answer.

1.) Gross Domestic Product (GDP)

2.) Net Domestic Product (NDP)

3.) Gross National Product (GNP)

4.) Net National Product (NNP)

This another answer.

Method # 1. Output (Product) Method

Method # 2. The Income Method

Method # 3. The Expenditure Method

Answer 1

Answer - The national income will be the measure of NNP of the economy at the Factor cost. It can be calculated by

1 - Output method

National income = Gross value added (VO-IC) - depreciation + net factor income from abroad - Net indirect taxes

2 - Expenditure method

NNP at factor cost = GDP (C + I + G + net exports ) - depreciation + Net factor income from abroad - Net indirect taxes

3 - Income method

National income = NDP at factor cost ( mixed income + operating surplus + compensation of employee ) + net factor income from abroad

So the national income can be calculated in these ways from all the three methods.