what is national income

what is national income

National income refers to the total monetary value of all goods and services produced within a country's borders over a specific period, typically a year. It includes income earned by individuals, businesses, and the government. National income is often used as a key indicator of a country's economic performance and overall economic health. It provides insights into the level of economic activity, the distribution of income, and the standard of living within a nation. National income is calculated using various methods, including the production approach, income approach, and expenditure approach. It serves as a fundamental concept in macroeconomics and is used by policymakers, economists, and analysts to assess and analyze economic trends and policies.