National Income

Discipline: Economics

National income is the total income, over a specified period of time, of all the inhabitants of an economy after allowing for capital consumption.

The term can also be used to describe a monetary flow that shows net additions to wealth. National accounting was first conducted by English economist Sir William Petty (1623-1687), and techniques were further developed during the 1930s.

Most measures of national income exclude non-market activities and certain social costs.

Also see: balanced budget multiplier, natural and warranted rates of growth, theory of income determination, theory of income distribution, Wagner's law

Source:
W Beckerman, An Introduction to National Income Analysis (London, 1966)

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