Friday, June 17, 2011

Concepts of National Income

Gross Domestic Product (GDP = Gross Domestic Product)   
GDP is the total value of final goods and services produced by an economy in a given period, calculated at market value.
Gross National Product (GNP = Gross National Product)

GDP = gross domestic product + Net Income of Foreign Affairs
Net National Product (NNP = Net National Product)
NNP = Net National Product GNP - capital replacement items + Depreciation
Net National Income (Net National Income = NNI)
NNI = Net National Income Net National Product - indirect taxes + subsidies
Personal Income (Personal Income = PI)
Personal Income = National Income + Net transfer payments - + retained earnings + social security contributions from company tax
Disposable income / After Tax (Disposable Income)
Personal Disposable Income = Income - Income Tax
GRDP (Gross Regional Domestic Product)
GRDP is the sum of gross value added is created successfully by all economic activities that are in a region during a certain period of time