Measures national income accounting
The money value of all final good and services produced with in a domestic territory of a country in an accounting year (1st April to 31th march) and net factor income from abroad, it all together known as ‘NATIONAL INCOME’ .(Of this country)
The circular flow of creation, distribution and spending of income taking place simultaneously in an economy.
That is income is created, then distributed, then spend and farther the income is created and the son process is continued .
Each way of looking national income suggest a different method of calculation
In India Central Statistical Organigetion (C.S.O.) measures national income
three process or method
1) Income Method
2) Value added or output method
3) Expenditure method
The three methods give three different angles of looking at the income flow based on different types of data:-
Income method measures relative contribution of factor owners, value added or product method measures the contribution of production units to total output of an economy, Expenditure method measures the relative flow and consumption and invest expenditure.
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