An example to show that all methods of estimating gdp gives same answer
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The three different methods of calculating national income are production ,income and expenditure method.
The total cost of production in the economy will always equal the wages paid to labourers ,rent to the landowner ,interest on capital and profit to the entepreneurs.and all this combines to form the income of the economy.hence production equals income.
Now the total income earned is spent on the output produced in the economy and therefore the income equals the expenditure in the economy.
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The total cost of production in the economy will always equal the wages paid to labourers ,rent to the landowner ,interest on capital and profit to the entepreneurs.and all this combines to form the income of the economy.hence production equals income.
Now the total income earned is spent on the output produced in the economy and therefore the income equals the expenditure in the economy.
I hope this answer is helpful to
Please mark it brainiest answer
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