Net national income is an economics

Economics

Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...

 term used in national income accounting. It can be defined as the net national product

Net National Product

Net national product is the total market value of all final goods and services produced by residents in a country or other polity during a given time period minus depreciation...

 (NNP) minus indirect tax

Indirect tax

The term indirect tax has more than one meaning.In the colloquial sense, an indirect tax is a tax collected by an intermediary from the person who bears the ultimate economic burden of the tax...

es. Net national income encompasses the income of households, businesses, and the government.

It can be expressed as:

NNI = C + I + G + (NX) + net foreign factor income - indirect taxes - depreciation

Depreciation

Depreciation refers to two very different but related concepts:# the decrease in value of assets , and# the allocation of the cost of assets to periods in which the assets are used ....

where:

• C = Consumption
  Consumption (economics)
  Consumption is a common concept in economics, and gives rise to derived concepts such as consumer debt. Generally, consumption is defined in part by comparison to production. But the precise definition can vary because different schools of economists define production quite differently...
  
  
• I = Investments
• G = Government spending
  Government spending
  Government spending includes all government consumption, investment but excludes transfer payments made by a state. Government acquisition of goods and services for current use to directly satisfy individual or collective needs of the members of the community is classed as government final...
  
  
• NX = net exports (exports minus imports)

This formula uses the expenditure method of national income accounting.