Question

Explain the 5 methods used to measures national income​

Answer 1

Answer:

National income can be measured through three different methods. The methods are as follows:

1. Product method

In this method National income is determined by the market value of all the final goods and services produced within a nation during a fixed time period.( The goods and Services does not include intermediate goods.)

2. Expenditure method

Under this method the national Income is determined by the total spending on final goods and services which are produced within a nation in a fixed time period.

3. Income method

As the name suggests , national Income under this method is calculated by adding the incomes received by producers.

Explanation:

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