How To Find National Income

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How To Find National Income
How To Find National Income

Video: How To Find National Income

Video: How To Find National Income
Video: National Income: Solving from GDP or GNP 2024, March
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Knowing how to calculate macroeconomic indicators will help you learn more about the situation in a particular country. For example, an indicator such as national income provides information on how the economy is developing and consumption opportunities in a particular state.

How to find national income
How to find national income

Instructions

Step 1

Before obtaining the indicator itself, it is necessary to define it. National income denotes all money received by the population in the form of profit for a certain accounting period. Usually the year is taken as a basis. An increase in this indicator also means an increase in the number of goods and services produced, as well as an increase in the welfare of the population.

Step 2

The calculation of the national income is carried out using another indicator - the net national product (NPP). It is obtained from the addition of the value of all goods and services produced during the year. Such information about modern states can be gleaned from the websites of ministries and departments responsible for economic development. To calculate the indicators of past centuries, it is necessary to use archives and research literature created by historians.

Step 3

After receiving the NNP, it is necessary to deduct from it the indirect taxes collected on the business. These include value added tax and excise taxes. This data is located on the websites and in the reports of the tax authorities.

Step 4

The resulting figure will be the national income. However, this indicator cannot be considered the only one suitable for assessing the economic situation. For example, to compare different economies of the world, the calculated per capita income can be considered more representative. Also, the national income does not reflect the state of society, for example, its possible strong property stratification. The growth of income in the state may be concentrated in the hands of the wealthiest citizens, and the most vulnerable segments of the population may become even poorer. To understand this process, amounts are calculated from the national income. on average received by the richest and the poorest. Nevertheless, the national income is a convenient measure for comparing the economic condition of the same state over time.

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