Answer to Question #84244 in Macroeconomics for Nandy

Question

National Income is the total value of all services and goods that are produced within a country and the income that comes from abroad for a particular period, normally one year.

Gross Domestic Product is defined as the value of the goods and services generated within a country.

By definitions, National income= Income from within the country and from abroad. GDP=Income within the country.

Here my doubt is I have seen in some textbooks why national income is referred as GDP and vice versa in measuring of national income?

Answer 1

A variety of measures of "national income" are used in economics to estimate total economic activity in a country or region, including gross domestic product (GDP), gross national product (GNP), net national income (NNI), and adjusted national income also called as NNI at factor cost. All are specially concerned with counting the total amount of goods and services produced within the economy and by different sectors.