Gross Domestic Product

National Income
GDP is the market value of all final goods and National Income is the total value of all
services produced within a country in a given services and goods that are generated within a
period of time
country and the income that comes from
abroad for a particular period, normally one
year.
In the calculation of GDP, many factors, such Gross Domestic Product, Gross National
as, services and goods produced, exports, and product, and Gross National Income are the
government/private spending are used.
factors that determine the national income.
The GDP determines the local income of a The National Income determines the overall
nation.
economic health of the country, trends in
economic growth, and contributions of various
production sectors, future growth and standard
of living.
Gross Domestic Product is used to measure the National income is used to measure level and
overall economic output of a country.
economic growth of a country.
GDP= C+ I + G + (X-M)
NI=GDP + Remittance-Outflow of income