Question

Explain the methods of calculating National income.

Answer 1

The National income of a Country can be calculated by the following three methods.
$1$. Product method: In product method, the total value of all goods and services produced in a country is taken into account.
$2$. Income Method: In income method the income and payments received by all he people in the country are calculated.
$3$. Expenditure method: In expenditure method, we add up the expenditure of all people on consumer goods, investment and saving.