National Income Accounting is a bookkeeping system that a government uses to measure the level of the country's economic activity in a given period of time.The most common indicators of national income accounting are GDP,GNP,NNP,NDP,PI.
GDP: Gross domestic product is the market value of all final goods and services produced in a country in a given time period.
GDP Depends on two factors:
1.Its quantity of inputs
2.Its ability to turn inputs into outputs.
We can calculate GDP With this formula,
Y=C+I+G+NX(EX-IM)
Where,
C is the personal consumption Expenditure
I is Investment
G is government expenditure
NX is Net Exports
GNP: Gross Domestic Product is the total value of final goods and services a nation produces during a given period of time include exports.
We can calculate,
GNP=GDP+(X-M)
Here,
X=Money flowing from foreign countries
M=Money Flowing to foreign Countries
NNP: Net national product is the value of finished goods and services produced by a countries citizens overseas and domestically.
NNP=GNP-DEPRECIATION
NDP: Net Domestic Product is the value of net output of the economy
We can calculate NDP By subtracting depreciation from GNP
NNP=GNP- DEPRECIATION
PI: Personal income is the value of money income received by individuals or households of a country during a given period.