National Income And Related Aggregates — Chapter Summary

National income is the sum total

National income is the sum total of factor incomes earned by the normal residents of a country during one accounting year. It is the same as net natio

National income can be measured by

National income can be measured by the output approach, income approach, and expenditure approach. In the output approach, it is the value of final go

Final goods are goods meant

Final goods are goods meant for final consumption or final investment. Intermediate goods are used as raw material for producing other goods or for re

National income at current prices

National income at current prices is nominal national income. National income at constant prices is real national income. Real national income is foun

The national income deflator measures

The national income deflator measures the average change in the price level of all goods and services included in national income. It is calculated as