Macroeconomics: Theory and Policy

3

National Income

After studying this topic, you should be able to understand

• GNP is a measure of the value of goods and services that the nationals or residents of the country produce regardless of where they are located.
• GDP is the total value of all the final goods and services produced by all the enterprises within the domestic territory of a country in a particular year.
• Personal income is the income received by the households and the non-corporate businesses.
• Disposable personal income is the amount, which is actually available to the households and to the non-corporate businesses after they have fulfilled their tax obligations to the government.
• GDP is one of the most important macroeconomic variables and one of the best measures to ...