What is the net aggregate income?
The productivity of an economy is reflected from its aggregate income that represents the total value generated by all the legally productive agents of an economy in a given period, usually a year. The net aggregate income is the sum total of all factor incomes in an economy that is yet to be accounted for inflation, and taxation.
There are four fundamental factors of production namely land, labor, capital, and enterprise that earn income for their productive services in the form of rent, wages, interest, and profits, respectively. The aggregate of all four types of incomes minus the cost of production of goods and services is called the net aggregate income. It is the type of aggregate income that has been adjusted for depreciation i.e. the aggregate income from which capital consumption allowance has been subtracted.
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