Answer to Question #36289 in Macroeconomics for matthew norotsky

Question

why must the gdp and the gdi, as well as the net national product and the net national income be equal to each other?

Answer 1

Since all income is derived from production (including the production of services), the gross domestic income of a country should exactly equal its gross domestic product (GDP). The same assumption is for net national product and the net national income.