Macroeconomics a with  aggregates with reference to the whole economy and not as a part of the whole economy. 

National Income (NI) Accounting: 

GDP, Gross Domestic product 

GDP measurement: expenditure, Income and value added method.


Marshall view NI  as the aggregate of commodities is national income which is arrived at only after deducting for depreciation and wear and tear of machinary, and plant used for productive purpose. 

Pigou's view of National Income

Fisher's view on NI


Gross National Product (GNP)

GNP: C+I+G+(x-M)+(R-P)

C-total Consumption

I-Total Investment

G-Total Government Expenditure 

X-M- net value of Foreign trade

R-P- net value of foreign transactions

Net National Product

NNP: GNP- D 

D- Depreciation of a year 


Gross Domestic Product 

GDP: C+I+G+ (x-M)

C-total Consumption

I-Total Investment

G-Total Government Expenditure 

X-M- net value of Foreign trade

GDP calculated in two ways 1. market price 2. Factor cost (indirect taxes, subsidies)