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There are several ways to measure a nation's income, including: Gross domestic product (GDP): A measure of the monetary value of final goods and services produced in a country over a given period of time. GDP is the most commonly used measure of a nation's income. However, it has some limitations, such as not accounting for the costs to human health and the environment from the production and consumption of the nation's output. Gross national income (GNI): A statistic that measures the total value added claimed by residents of a country over a period of time. GNI is made up of GDP plus net receipts of primary income from nonresident sources. Net national income (NNI): An indicator of a country's total economic activity.
NNI is calculated by: Subtracting consumption of fixed capital from GDP Adding factor income received from abroad Subtracting factor income paid to abroad Adding subsidies received from abroad Subtracting subsidies paid to abroad
Other methods for measuring national income include: Income method, Product/value added method, and Expenditure method.
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