One method for calculating National Income, is the expenditure method - Leaving Cert Economics - Question 7 - 2016

The two other methods used to calculate national income are the 'Income Method' and the 'Output Method'.

1. Changing Economic Growth: National income statistics provide insights into the rate of economic growth within the country. It can help determine how well an economy is performing over time.
2. Standard of Living Analysis: A growing national income often indicates an improvement in the standard of living. If the national income is rising, it suggests that people may have higher incomes and better access to goods and services.

C = Consumption
I = Investment
G = Government Expenditure
X = Exports
M = Imports

To calculate National Income, we use the formula:

$Y = C + I + G + X - M$
Substituting the values:
$Y = €2,000m + €700m + €500m + €200m - €150m$
$Y = €2,000m + €700m + €500m + €200m - €150m = €3,250m$
Thus, the level of National Income is €3,250 million.

EU stands for the 'European Union', and GDP stands for 'Gross Domestic Product'.

1. Increased Employment Levels: A rising GDP may indicate that businesses are expanding, which usually leads to the creation of more jobs, enabling employment growth.
2. Improved Government Finances: With increased GDP, indirect tax revenue rises, allowing for better funding for public services and reducing national debt.

1. Pressure on Housing Market: Increased economic activity can lead to a rise in demand for housing, causing affordability issues and potential increases in homelessness.
2. Inflationary Pressures: Rapid economic growth can lead to higher demand than supply, which may cause inflation, reducing the purchasing power of citizens.