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Net national income is

...

Net national income is

A.

Gross national income minus depreciation

B.

Gross domestic product plus net income from abroad

C.

Nominal national income divided by the price level

D.

Gross national income divided by the total population

E.

Gross national product plus subsidies minus indirect taxes

Correct answer is E

Net national income (NNI) is an economics term used in national income accounting. It can be defined as the net national product (NNP) minus indirect taxes. 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 - manufactured capital depreciation

 

where:

 

C = Consumption

I = Investments

G = Government spending

NX = net exports (exports minus imports)