is national income and gdp the same thing? please explain the exact formula for both and the difference between the two. thank you
GDP is a particular measure of national income. Other measures of national income include GNY, NNY etc.
In many places they use gdp and income interchangably..i could not understand why? For eg in the topic determination of national income they have used gdp and income for the same thing. What i think is that national income can include dividends etc that people earn..but does GDP include that? Please tell me what mistake am i making?
Both include dividends. As I said, one is a measure of the other, so it makes sense that sometimes they are used interchangeably. It's like saying that you might use "price" and "£" interchangeably. £ is one possible measure of price, and if you're in the UK, then price and £s are effectively the same thing. But in other contexts (in this case, countries), price can be measured in $s euros etc. You should be fine to use GDP and national income interchangeably.
