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Economists and the media use many different names in addition to GDP to describe a nation's national output/production of goods and services, some of these names are output, national income, total income, aggregate supply and the list goes on. In essence these terms can represent the same concept but there are significant differences among these terms. As a economics/business student you will learn the meaning of these terms and how they differ from each other. These terms suggest that economists use output and income interchangeably.
Take for example a dollar worth loaf of bread; every penny of this dollar goes as income of somebody. Portion of the dollar is proprietors income/profits to the grocer, baker, miller and the farmer; some attributes as wages and salaries of their employees; some are payments as interest to banks for financing loans; and some are income to landlords as rents. This is why the total production is also called as income.
Any thoughts or comments? What is the necessity and relevance of measuring national income?
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