Question

Explain the methods of calculating National Income

Answer 1

Basically it is the total income of all the resident of a country
so it can possibly colculated through the total income by adding the income of each resident

Answer 2

National Income calculation methods:

The three most common methods for calculating National Income are the value-added, income, and expenditure method.

Explanation:

• The total income received by the citizens and businesses of a state for a certain duration shall be the federal or gross national income.
• The total value of all services and goods produced during a given period of time may also be measured by national income.
• Now, there are many approaches to calculating national income. The three most common methods are the value-added, income, and expenditure method.
• In first method, at each stage of production, the value-added method focuses on the added value to a product.
• In next method, the income method revolves around revenues received on factors such as land and labor production.
• In final method, the method of expenditure puts emphasis on different types of consumption and investment based expenditure.