Gdp gnp nfia net factor income from abroad where

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GDP = GNP NFIA (Net Factor Income from Abroad), where NFIA=income earned by residents abroad income earned by non-residents from our country.
Net National Product (NNP) GNP included final consumer goods + capital goods Depreciation: part of capital goods that is used up or consumed in the process of production Usually covered under Gross Investment, (Gross Investment = Net Investment + Replacement Investment/Depreciation) NNP = GNP Depreciation NNP FC = NI (the actual measure of National Income ) Per Capita Income = (NNP FC = NI ) / Total Population Personal Income (PI): The sum of all kinds of income received by the individuals from all sources of income The share of NI actually received by the HH sector. Personal Income (PI) = National Income (NI) Income earned but not received (undistributed corporate profits, social security contributions by the HHs, etc.) + Income received but not earned (transfer payments by business and govt. to HHs). Disposable Personal Income (DPI): the income at the disposal of a person, DPI = PI Direct Taxes. Nominal and Real GNP GNP is estimated at current and constant prices Nominal GNP: market value of all final goods and services measured in current year prices. Real GNP: market value of all final goods and services measured in the price of a base year (constant prices). Why do we estimate GNP at constant prices? How to convert the nominal (current) values into real (constant) values?
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