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Major national income concepts of components​

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User Janw
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The major national income concepts of components are:

1. Gross Domestic Product (GDP): It represents the monetary value of all final goods and services produced within a country's boundaries during a specified period.

2. Gross National Product (GNP): It represents the monetary value of all goods and services produced by the residents of a country, regardless of their location, during a specified period.

3. Net National Product (NNP): It represents the GNP minus the depreciation of capital goods. This concept helps to measure the actual income available to a country in a given year.

4. National Income (NI): It represents the total income earned by the factors of production (labor, capital, land, and entrepreneurship) in a given year. It is the sum of all wages, rents, interests, and profits.

5. Personal Income (PI): It represents the income received by individuals from all sources, including wages, salaries, rental income, social security benefits, and interest.

6. Disposable Personal Income (DPI): It represents the amount of personal income left after taxes have been paid. It is the income available to individuals for their personal consumption or saving.

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User Berkan Ercan
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