Question

in increase in national income an indicator of economic welfare? comment ​

Answer 1

Answer:

The changes in the size of national income and economic welfare may be positive or negative. The positive change in the national income increases its volume, as a result people consume more of goods and services, which. leads in increase in the economic welfare.

Answer 2

Yes, an increase in money is an indicator of the economic welfare.

• There is a close link between economic welfare and national income, as both are calculated in the monetary terms.
• Thus, a rise in the national income also gives a rise to economic welfare in an economy.
• Real GDP which is a factor of national income analyses the production volumes.
• An increase in real output determines that the aggregate demand has risen faster than the inflation rates, and thus the economy is experiencing a positive growth, which also depicts a positive economic welfare.