National Income And Its Related Aggregates


The related aggregates of national income are –

  1. Gross Domestic Product at Market Price (GDPMP)
  2. Gross Domestic Product at Factor Cost (GDPFC)
  3. Net Domestic Product at Market Price (NDPMP)
  4. Net Domestic Product at Factor Cost (NDPFC)
  5. Net National Product at Factor Cost / National Income (NNPFC / NI)
  6. Gross National Product at Factor Cost (GNPFC)
  7. Net National Product at Market Price (NNPMP)
  8. Gross National Product at Market Price (GNPMP)

Gross Domestic Product at Market Price

It is the money value of all the final goods and services produced within the domestic territory of a country during an accounting year.

GDPMP = Net Domestic Product at Factor Cost (NDPFC) + Depreciation + Net Indirect Tax

Gross Domestic Product at Factor Cost

It is the value of all final goods and services produced within domestic territory of a country which does not include net indirect tax.

GDPFC = GDPMP – Indirect Tax + Subsidy
OR
GDPFC = GDPMP – NIT

Net Domestic Product at Market Price

It is the money value of all final goods and services produced within domestic territory of a country during an accounting year and does not include depreciation.

NDPMP = GDPMP – Depreciation

Net Domestic Product at Factor Cost

It is the value of all final goods and services which does not include depreciation charges and net indirect tax. Thus it is equal to the sum of all factor incomes (compensation of employees, rent, interest, profit and mixed income of self-employed) generated in the domestic territory of the country.

NDPFC = GDPMP – Depreciation – Indirect Tax + Subsidy

Net National Product at Factor Cost

It is the sum total of factor incomes (compensation of employees + rent + interest + profit) earned by normal residents of a country in an accounting year.

NNPFC = NDPFC +
( Factor Income earned by normal residents from ROW – Factor Payments made to ROW )

Gross National Product at Factor Cost

It is the sum total of factor incomes earned by normal residents of a country along with depreciation, during an accounting year.

GNPFC = NNPFC + Depreciation

Net National Product at Market Price

It is the sum total of factor incomes earned by the normal residents of a country during an accounting year including net indirect taxes.

NNPMP = NNPFC + Indirect Tax – Subsidy

Gross National Product at Market Price

It is the sum total of factor incomes earned by normal residents of a country during an accounting year including depreciation and net indirect taxes.

GNPMP = NNPFC + Depreciation + NIT

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Bibliography : NIOS – Economics

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