Define National Income. Explain various methods of compu- tation of national income.
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National income means the total amount of money earned within a country.
The various methods of computation of national income are:
1.Value added method
2.Income method
3.Expenditure method
1.Value added method -This is also called output or production method. In this method the value added by each enterprise in the production goods and services is measured.
2.Income method- This method approaches national income of distribution side
3.Expenditure method- It arrives at national income by adding up all expenditures made on goods and services during a year.
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The various methods of computation of national income are:
1.Value added method
2.Income method
3.Expenditure method
1.Value added method -This is also called output or production method. In this method the value added by each enterprise in the production goods and services is measured.
2.Income method- This method approaches national income of distribution side
3.Expenditure method- It arrives at national income by adding up all expenditures made on goods and services during a year.
Hope it helps...
pls mark as brainliest answer..
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