Understanding how National Income and GDP show a country's economic health is really interesting. Let’s break down what these terms mean:

1. National Income:

• This is the total money earned by everyone living in a country.
• It includes things like salaries, business profits, rent, and taxes (after taking away any government support).
• When national income is high, it usually means people have more money to spend. That's a sign of a strong economy.

2. Gross Domestic Product (GDP):

• GDP is the total value of all the goods and services made in a country over a certain time, usually a year.
• It helps us see how well the economy is doing.
• If GDP is going up, it means the economy is growing, which can lead to more jobs and a better quality of life.

How They Show Economic Health:

• When both national income and GDP are high, it usually means people are doing well and can spend more money.
• Economists pay close attention to GDP growth rates. If they are rising, it might mean businesses are doing well and people are buying more.
• On the other hand, if GDP is falling, it could mean problems, like a recession or more people losing jobs.

In short, both National Income and GDP are like the heartbeats of an economy. They help us understand how a country is doing financially!