Definition of National Income, Nominal GDP, Current GDP and Per-Capita GDP

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National Income :-

National income refers to the money value of all the goods and services produced in a country during a financial year.


GDP at Current Price (or) Nominal GDP :-

(a)- It is the money value of goods and services produced in a year measured at the price of Domestic Territory.

(b)- It can increase if price level rises.

(c)- It is not good solution for society.


GDP at Constant Price (or) Real GDP :-

(a)- It is the money value of goods and services produced in a year measured at the price of Base Year.

(b)- It can increase if level of production rises.

(c)- It is good welfare for society.


 Per -Capita GDP :- 

(a)- GDP per capita is a measure of a country economic output that accounts for its number of people.

(b)- It divides the country's GDP by its total population. That makes it a good measurement of a country's standard of living.

(c)- It tells you how prosperous a country feels to each of it's citizens.




  

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