Keynes Three Deproach To National Income Approach?
Net Domestic Product at Market Price Net Domestic Product at market price is the market value of final goods and services produced by all the producers in the domestic territory of a country during an accounting year exclusive of consumption of fixed capital. It is equal to the net value added at market price. Net Domestic Income or Net Domestic Product at Factor Cost “NDI is the income generated in the form of wages, rent, interest and profit in the domestic territory of a country by all the producers (normal residents and non-residents) in an accounting year”(Hanson).
NDP at Factor Cost = NDP at Market Price – Indirect Tax + Subsidies
Private Income Central Statistical Organization defines Private Income as “the total of factor income from all sources and current transfers from the government and rest of the world accruing to private sector” or in other words the private income refers to the income from socially accepted source including retained income of corporation.
NI + Transfer Payments + Interest on Public Debt + Social Security – Profit and Surplus Public