Enter the total consumption, government expenditures, investments, exports, imports, foreign production by national residents, and domestic product by non-residents to determine the national income of a country.
National Income Formula
The following equation can be used to calculate a national income.
NI = C + GE + I + E – IM + FPNR – DPBNR
- Where NI is the national income
- C is the total consumption
- GE is the government expenditures
- I is investments
- E is exports
- IM is imports
- FPNR is foreign production by national residents
- DPBNR is domestic production by non-national residents
National Income Definition
A national income is a monetary estimate of the total monetary income of a country. It’s similar and in some cases the same as the GDP, or gross domestic product.
National Income Example
How to calculate a national income?
- First, determine the consumption and expenditures.
Calculate the total consumption and the government expenditures.
- Next, determine the investments, imports, and exports.
Calculate the total in investments, along with the imports and exports.
- Next, determine the FPNR and DPBNR.
Calculate the FPNR and the DPBNR.
- Finally, calculate the national income.
Calculate the national income using the formula above.
National income is a measure of the monetary yearly value of a country.