Income Approach With Gnp

The income approach states that all economic expenditures should equal the total income generated by the production of all economic goods and services.

Income approach with gnp. According to the income approach gdp can be computed as the sum of the total national income tni sales taxes t depreciation d and net foreign factor income f. Gross national income gni gross national product gnp and gross domestic product gdp are all measurements of a country s ability to produce and earn. Net national product and national income net national product nnp is a fine tuned value for a more accurate accounting of the economy s final products which is equal to gnp less depreciation. Total national income is the sum of all salaries and wages rent interest and profits.

Gross national income gni gross national product. Br the gdp compiled by statistical agencies is based on the prices prevailing in the market during the period. The alternative method for calculating gdp is.