National income
Definition. National income is the total money value of all goods and services produced in an economy over a given period, equivalently the total income earned by, or total expenditure of, the factors of production. It is measured by the circular flow of income between households and firms.
It can be measured by the output, income or expenditure method, which in principle give the same total. National income is a key indicator of an economy size and of changes in economic activity.
This term belongs to The Circular Flow of Income in A Level Economics. Read the full chapter for the diagrams, worked examples and exam technique.
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