What is National Income?
Definition: National Income is the total (aggregate) money value of all final goods and services produced by the residents of a country during a year.
• It can be measured in three ways:
1. Output/product method/technique
2. Expenditure method/technique
3. Income method/technique
• All the three methods will produce the same figures.
Important Concepts and Adjustments
1. From "market price" to "factor cost".
2. From "Domestic to "National " Output/income
3. From "Gross" to "Net" output/income
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