National income by output method is calculated in the following manner:
GDP at market price = value of output in a year - intermediate consumption in the economy
NNP calculated at factor cost = GDP at market price - depreciation + NFIA - net indirect taxes
NFIA (net factor income from abroad)
National Income can be also calculated by Income Method:
NDP at factor cost = compensation of workers + calculated operating surplus + mixed income
National income = NDP calculated above + NFIA
Another method to calculate national income is by expenditure approach:
GDP = C + I + G + (X - M)
Where, C = consumption expenses, I = Gross private domestic investment, G = Expenses of Government and (X - M) or "Net Exports".
GDP at market price = value of output in a year - intermediate consumption in the economy
NNP calculated at factor cost = GDP at market price - depreciation + NFIA - net indirect taxes
NFIA (net factor income from abroad)
National Income can be also calculated by Income Method:
NDP at factor cost = compensation of workers + calculated operating surplus + mixed income
National income = NDP calculated above + NFIA
Another method to calculate national income is by expenditure approach:
GDP = C + I + G + (X - M)
Where, C = consumption expenses, I = Gross private domestic investment, G = Expenses of Government and (X - M) or "Net Exports".
