what is Income expenditure method ?

Asked by Divyanshu Vats | 13th Nov, 2014, 03:22: PM

Expert Answer:

This question is supposed to be “what is income and expenditure method?”

Income and expenditure are two different methods used to measure the National Income of a country.

Income method- Under this method, National Income is measured in terms of factor payments to the owners of factors of production.

Expenditure method- Under this method, National Income is measured in terms of expenditure on the purchase of final goods and services produced in the economy.

Answered by Tharageswari S | 13th Nov, 2014, 04:25: PM

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