Class 12 Economics – National Income and Related Aggregates

Chapter Overview

This chapter explains the key aggregates in national income accounting, including GDP, NDP, GNP, NNP at both market prices and factor cost. You’ll learn their definitions, interrelations, how to compute them and the difference between domestic and national income. The chapter lays foundations for macroeconomic analysis. :contentReference[oaicite:0]{index=0}

Important Keywords

• GDP (Market Price): Total value of final goods/services produced within a country including depreciation and net indirect taxes. :contentReference[oaicite:1]{index=1}
• GDP (Factor Cost): GDP minus net indirect taxes. :contentReference[oaicite:2]{index=2}
• NDP: Net value after subtracting depreciation. Comes in market and factor cost variants. :contentReference[oaicite:3]{index=3}
• GNP: GDP plus net factor income from abroad (NFIA), at market or factor cost. :contentReference[oaicite:4]{index=4}
• NNP (National Income): GNP minus depreciation and indirect taxes. :contentReference[oaicite:5]{index=5}
• NFIA: Income earned by residents from abroad minus income paid to foreigners domestically. :contentReference[oaicite:6]{index=6}