Explain briefly the distinction between National Income and Net National Disposable Income.
National Income is the sum total of factor incomes earned by normal residents of a country during the period of one year.
Net National Disposable Income, on the other hand, refers to income of normal residents of a country, which they can actually dispose-off during the year.
Importantly, it includes besides National Income, net of current transfers from rest of the world and Net Indirect Taxes, i.e.
Net National Disposable Income = National Income (NN${{P}_{Fc}}$) + Net Indirect Taxes + Net Current Transfers from Rest of the World