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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 - depreciation
- C = Consumption
- I = Investments
- G = Government spending
- NX = net exports (exports minus imports)
This formula uses the expenditure method of national income accounting.
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