What is relationship between national income and wages?

National income and wages are closely related, as national income represents the total income earned by a country's residents, including wages, profits, rents, and taxes. When national income increases, it often leads to higher demand for goods and services, prompting businesses to hire more workers and potentially raise wages to attract talent. Conversely, if national income falls, businesses may cut costs, leading to stagnant or reduced wages. Thus, the overall economic performance, reflected in national income, directly influences wage levels in the economy.