Chapter 16

National Income

After studying this chapter, you should be able to understand:

  • GNP is a measure of the value of goods and services, which 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 households and the non-corporate businesses.
  • Disposable personal income is the amount, which is actually available to the households and to the non-corporate business 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 ...

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