Measures of National Income Gross Domestic Product (GDP) :– - TopicsExpress

Measures of National Income Gross Domestic Product (GDP) :– GDP is the measure of National Income, within the political boundary of a country by nationals or non nationals. Gross National Product (GNP) :– GNP = GDP + Net factor income from abroad Net factor income from abroad = Factor income received by Indian national from abroad – Factor income paid to foreign nationals from India Net National Product (NNP) :– NNP = GNP – Depreciation Net National Product (NNP) at factor cost (or National Income) – NNP at factor cost is calculates as follows: National Income = NNP – Indirect Tax (Value Added Tax) + Subsidies Personal Income :– In order to calculate Personal Income, we need to deduct from the income of household which is not actually received by them. Thus Personal Income is calculated as follows: Personal Income = National Income – Social contribution – Corporate Income Tax – Undistributed corporate profit + Transfer Payment Disposable Income :– Disposable Income is calculated as follows: Disposable Income = Personal Income – Personal Tax

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