Question

Contribution of national income in economy

Answer 1

National income figures are an important tool of macroeconomic analysis and policy.

National income estimates are the most comprehensive measures of aggregate economic activity in an economy.

Answer 2

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In product method, national income is measured on the basis of the flow of goods and services. We calculate money value of all final goods and services produced in an economy during a year. In expenditure method, national income is measured as a flow of expenditure.