Some Important Relations relating to National Income Aggregates

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Some Important Relations relating to National Income Aggregates
Dr. Veena Upadhyay, Dept. of Economics 

Domestic Product and National Product
Domestic product (or domestic income)is defined as the value of final goods and services produced by all the enterprises located within the domestic territory of a country during a year.
Domestic Product=National Product-Net factor Income from Abroad
National Product (or income) refers to the amount of final gods and services produced by the normal residents of a country.
National Product=Domestic Product + Net factor income from abroad

National Product at Market Price and National Product at Factor Cost
National Product is the value of final goods and services produced by resident of a country calculated at their market prices. On the other hand National income or national product at factor cost expresses national product as the sum of all factor payments.
National Product at Market Prices =National Product at factor cost +Net Indirect Taxes
National Product at Factor Cost =National Product at market prices-Indirect taxes +Subsidies

Gross Domestic Product and Net Domestic Product

Gross Domestic Product= Net Domestic Product + Depreciation
Net Domestic Product= Gross Domestic Product-Depreciation

Gross Domestic Product at Market Price and Gross Domestic Product at Factor Cost


Gross Domestic Product at Market Price= Gross Domestic Product at factor cost + Net indirect access
Gross Domestic Product at Factor Cost= Gross Domestic Product at market price-Indirect access + Subsidies


Gross National Product at Market Prices and Net National Product at Market Prices

Gross National Product at Market Price= Gross Domestic Product at Market Price + Net Factor income from Abroad
Net National Product at Market Price= Gross National Product at Market Price- Depreciation


Gross National Product at Factor Cost and Net National Product at Factor Cost

Gross National Product at Factor Cost=Gross National Product at Market Price-Net Indirect Access
Net National Product at Factor Cost=Net Domestic Factor Income + Net Factor Income earned from Abroad

National Income can be defined as factor income accruing to the normal residents of a country during a year

Dr. Veena Upadhyay Assistant Professor Dept. of Economics 

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