Answered: Differentiate between the production…

Differentiate between the production approach and income approach to the measurement of national income. Write the pros and cons of each method.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter19: Measuring Economic Performance

Section: Chapter Questions

Problem 9P

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Question

Differentiate between the production approach and income approach to the measurement of national income. Write the pros and cons of each method.

Definition Definition Monetary value of all goods and services produced in an economy during a financial year. National income also refers to the total income earned by the factors of production during a financial year.

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