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Que : 85. Write the main methods to calculate the National Income. |
Answer: Que : 85. Write the main methods to calculate the National Income. Answer: 1. Value added method - value added refers to the addition of value to the raw material by an firm , by virtue of its productive activities. Value added = value of outpiut - intermediate consumption NNPfc = NDPfc + NFIA 2. Income method - Accoding to this method, al the ncomes that accure to the factors of production by ways of profit, rent, interest, etc are summed up to obtain the national income. NDPfc= compensation of employees + rent and royalty + interest + profit + mixed income NNfc = NDPfc + net factor income from abroad 3. Expenditure method - factor income by factors of production is spent in the form of expenditure on purchase of goods and services produced by firms. GDPmp = private final consumption expenditure + government final consumption expenditure + gross domestic capital expenditure + net export NDPfc = GDPmp - depreciation - net indirect taxes NNPfc = NDPfc + NFIA |
