National Income : its meaning and formulae
National Income which has a acronym of “NI” refers to the total amount of all the incomes earned by all factors of production owned by all the nationals in the country within a period of consideration usually one year.
It is the sum of all wages, rent, income, and profit which acrue to labour, capital, land and entrepreneur.
It is given as;
NI = NNP – Indirect business Tax – Business Transfer Payment + Government Subsidy.
where
NNP means Net National Product
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