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NATIONAL INCOME AND RELATED AGGREGATES - Coggle Diagram
NATIONAL INCOME AND RELATED AGGREGATES
INCOME
domestic income is the sum total of factor income generated within the domestic territory of a country
national income is the sum total of factor income by normal residents of a country
GROSS AND NET CONCEPTS OF DOESMTIC PRODUCT
GDP - DEPRECIATION = NDP
AGGREGATES RELATED TO NATIONAL INCOME
NDP MP - exclusive of depreciation (ndpmp = gdpmp-depreciation)
GDP MP - it is the market value of final goods and services produced within the domestic territory of a country inclusive of depreciation
GNP MP - it is the sum total of gross domestic product at market price and net factor income from abroad (gnp mp = gdp mp+ net factor income from abroad)
NNP MP - sum total of net domestic product at market price and net factor income from abroad (nnp mp = ndpmp+net factor income from abroad)
GDP FC - sum total of factor cost incurred on the production of final goods and services inclusive of depreciation ( gdp fc = coe+rent+interest+profit+depreciation)
NDP FC - ndp fc = gdp fc +depreciation
GNP FC - gnp fc = gdpfc+net factor income from abroad
NNP FC - nnp fc = coe+rent+interest+profit+net factor income from abroad
nominal GDP
it refers to GDP at current prices.
nominal GDP = Q x P
nominal GDP = real GDP x price index/100
REAL GDP
it refers to GDP at constant prices
real GDP = Q x P*
GDP AT CURRENT PRICE/ PRICE INDEX x100
LIMITATIONS:
DISTRIBUTION OF INCOME
COMPOSTION OF GDP
NON-MONETARY EXCHANGES
EXTERNALITITES