Measure Natoinal Income

What id National Income
National income measures the total value of goods and survices produced within the economy over a period of time
National Income can be calculates in three main ways
1.The sum od faceor incomes earned in production
2.Aggregate demand for goods and survices
3.The sum of value added from each prosuctive sector of economy
Gross Domestic Product(GDP)
GDP measures the value of output produced within the domestic boundaris of the UK
GDP includes the output of the foreign owned firms with production plants located in the UK
There are three ways of calculating GDP-all of which should sum to the same amount since bu identity
National Output=National Expenditure=National Income
Under the new definitions introduced in 1998 ,GDP is now known as Gross Valued Added