What is the concept of national income?(500 words)

The term national income refers to the measure of economic activity in a country and considers economic activities to include production, expenditure, income, and investment.

- Define national income: Gross national income encompasses the total monetary worth of all final goods and services produced in a country within a specified period of time, commonly one year. It is a yardstick for the measure of a country's economic output and productive ability.

- Explain measures like GDP, GNP, NI, and PI: On the part of the national income and economic production measures, there are a few indicators. The same as measuring the wealth of the economy, GDP (Gross Domestic Product) presents the value of economic production within a country's borders. GNP represents all production within a country, regardless of whether or not the company is based in that country or the place of residence of the person whom is doing the production is in that country. NI (National Income) closely estimates how much a country makes, less depreciation. PI (Personal Income) is the income which are received by the same households.

- Discuss components of national income: National income is part of the employee's wages, profits, rents, corporate taxes, and owner incomes, which all play a part in the production of output.

- Explain uses and limitations: The Keynes philosophy is thus widely used for the following purposes - measuring the economic growth, comparing living standards across countries and over time, as well as by government policymakers for the macroeconomic policies. Constraints are the fact that it is hard to assess the economy that goes on underground, the quality of the produced goods, the effects on the environment, changes in the income distribution, and so on.

- Discuss importance for business managers: Emphasized on the country-wide growth of the output, national income trends prove very important for business managers because they show economic growth, development cycles, level of customer purchasing power, and other factors that business managers must take into consideration when making planning and financial decisions.