What is national income, Macroeconomics

Assignment Help:

Q. What is national income? What are the different methods of measuring national income?

National income is the aggregate money value of the annual flow of final goods and services in the economy during a given period. Paul Studenski writer "National income is both a flow of goods and services and a flow of money income. Then National income represents the aggregate value of final products. Methods to calculate national income are Three methods A) Product method: In this two approaches are, i. Final Product approach: "sum total of market value of all final goods and service produced by all productive units in the domestic economy in an accounting year. ii. Value Added approach: Net value added at factor cost by all the producing units during an accounting year within the domestic territory in summed up. B) Income method: Under this method, National income is calculated by summing up of factor incomes of all the normal residents of a country earned within and outside the country during a period of one year. N.I = compensation of employees + operating surplus + Net factor income from abroad C) Expenditure method: By considering private consumption expenditure, investment expenditure, they calculate GDP Then, GDP = C + I + G + (X - M)


Related Discussions:- What is national income

What is total surplus in net gain, What is total surplus in net gain? T...

What is total surplus in net gain? Total surplus in net gain: The total surplus generated into a market is the total net gain to consumers and producers through trading into

Hypothetical economy, #C=100+0.8yd G=100 T=0.25y X=150 M=0.25yd 1) What is ...

#C=100+0.8yd G=100 T=0.25y X=150 M=0.25yd 1) What is the level of equilibrium national income? 2) Estimate the budget surplus or deficit at the equilibrium national income. 3) Deri

Franchises ensure appropriate international markets, How can franchises ens...

How can franchises ensure their products are appropriate for international markets?

Determinants of long run prosperity rank, The questions posed are broad and...

The questions posed are broad and open ended so be careful to allow yourself enough research and planning time. If you are completely on top of the material delivered in class, the

Demand for memberships at the health club, a health club sells 50 membershi...

a health club sells 50 memberships when the monthly price is $60 and 70 memberships when the monthly price is $40. the price elasticity of demand for memberships at this health clu

Calculate the actual velocity profile, You are developing a sampling protoc...

You are developing a sampling protocol whereby you're going to insert a probe into a turbulent flow in a circular conduit of radius R. a. Using a description of a velocity profi

Short-run framework, What is the difference between the short-run framework...

What is the difference between the short-run framework and the long-run framework? Discuss how each relates to supply and demand.

Quantity Theory of Money, 2. Use the Quantity Theory of Money to explain in...

2. Use the Quantity Theory of Money to explain inflation (a increase in the overall level of prices). (4 points) If you were a member of the Federal Reserve Board of the Governor

Gross domestic capital formation, Gross Domestic Capital Formation  Pro...

Gross Domestic Capital Formation  Production requires services of fixed assets such as machinery, equipment and structures as well as working capital i.e. stocks of raw materia

State the term- - gdp is a flow, State the term- - GDP is a flow Lastl...

State the term- - GDP is a flow Lastly, note that GDP is a flow variable and not a stock variable. By a flow variable we mean a variable which is measured in something per uni

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd