define national income and national output as used in economics

Expert Solution

National output is the total value of everything a country produces in a given time period. Everything that is produced and sold generates income. Therefore, output and income are usually considered equivalent and the two terms are often used interchangeably. Output can be measured as total income, or, it can be viewed from the production side and measured as the total value of final goods and services or the sum of all value added in the economy.

national output and national income deal with the total value of goods and services produced in a country. a better explanation is given below.

joseph irungu answered 2 years ago

Below is a list of domestic output and national income figures for a certain year. All...

Below is a list of domestic output and national income figures for a certain year. All figures are in billions. The questions that follow ask you to determine the major national income measures by both the expenditures and the income approaches. The results you obtain with the different methods should be the same. Category Value Category Value Personal consumption expenditures $245 Personal saving 20 Net foreign factor income 4 Dividends 16 Transfer payments 12 Compensation of employees 223 Rents 14...

The Cobb-Douglas production function is a classic model from economics used to model output as a...

The Cobb-Douglas production function is a classic model from economics used to model output as a function of capital and labor. It has the form: f(L,C) = c0Lc1Cc2 where c0, c1, and c2 are constants. The variable L represents the units of input of labor, and the variable C represents the units of input of capital. In this example, assume c0 = 5, c1 = 0.25, and c2 = 0.75. Assume each unit of labor costs $20 and each unit...

Measuring domestic output and national income. Explain in two paragraphs the two sides of GDP. In...

Measuring domestic output and national income. Explain in two paragraphs the two sides of GDP. In two other aditional paragraphs explain what is not included and why?

1- Why can’t Gross National Income be directly used as a measure of income level?...

1- Why can’t Gross National Income be directly used as a measure of income level? What does the PPP adjustment take into account? Why has it to be per capita? Q_12: Based on the findings above, what conclusions can be drawn about income and health inequality between countries in the world? What is the general relationship between income and health status? Why do you think there is such a relationship? What does the existence of the outliers tell...

3.Define: (a)Positive economics (b)Normative economics.

Define potential output (or potential GDP). How this concept is used by economists to meet the...

Define potential output (or potential GDP). How this concept is used by economists to meet the goals of macroeconomics?

National Income The following are some of the national income accounts for the country of Ocean:...

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Name the 4 commonly used R & D terms according to the National Science Foundation.and define...

Name the 4 commonly used R & D terms according to the National Science Foundation.and define each of them

The national income is $19.74 trillion, consumption is 69% of national income, private investment is 16%...

The national income is $19.74 trillion, consumption is 69% of national income, private investment is 16% of national income, and government spending is 18% of national income. What is the current account balance? a. $0.592 trillion b. -$0.592 trillion c. $0 d. Cannot be determined with the information given (SHOW ALL WORK)

equilibrium level of the national income = 2,500 full employment level of national income = 3,000...

equilibrium level of the national income = 2,500 full employment level of national income = 3,000 C= 200+ 0.6Y 1. What is deflationary gap ? 2. To full employment level, How much increase effective demand ?

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