# What is the national income?

National income, also known as national income, is the result of the sum of the set of total production of goods and services that have been produced throughout a financial year or year.

The concept of national income thus includes workers' wages, rents, interests and the way in which capital is divided. Therefore, this term corresponding to the area of ​​the macroeconomía it belongs to the productive factors. However, in this definition of national income we leave out what are subsidies, pensions, and family allowances.

## Characteristics of national income

Its claim to account for consumption is specific to national income, which is why it is not measured and consumption that is considered intermediate is not taken into account.

Even so, the main characteristic of national income is precisely the injection of capital from the private economy, which as a whole gives rise to what is considered as money raw. In the end, the income of a country ends up being measured by its investment on the one hand, and on the other by that capital that is not invested, which is savings.

In a way, income or national income also depends on the personal income, which is the set of money that for one reason or another is received by citizens.

## Is national income the same as GDP?

There is a clear difference between national income and GDP, and we find it in that the GDP It also values ​​all the income they have had outside the country, not just inside it. For this reason, when we talk about national income and national income, we are talking about the redundancy of nationality.

For this reason, it is that numerous experts in economics have shown a critical tendency towards national income, because it does not value the distribution of income and its origin.

## How the national income is calculated

To calculate national income or national income, the sum of the economic remuneration of work and employees, the operating surplus, together with the total sum of rents, interests and benefits, is taken into account. In addition, in this formula of income or national income we will take into account the income of all foreigners residing within a country, capital depreciation, total indirect taxes and subsidies.

RN = RA + ENE + = PIBPM - (Ti - Sub) - D + RRN - RRE = PNNCF

Categories N