National Income

National Income refers to the total value of all goods and services produced in a country over a specific time period, usually measured annually. It encompasses wages, profits, rents, and taxes, minus subsidies. National Income is an important indicator of a country's economic health, reflecting the standard of living of its citizens. It helps policymakers assess economic performance, plan budgets, and implement fiscal policies. Common methods of calculating National Income include the Gross Domestic Product (GDP) and Net National Income (NNI). Understanding it is vital for grasping the overall economic activity and prosperity of a nation.