Explain how National Income is estimated using expenditure approach in – InterviewSolution

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1.

Explain how National Income is estimated using expenditure approach in National Income accounting. Illuminate the limitations of GDP as a measure of Social Welfare.

Answer»

NATIONAL income under expenditure method is CALCULATED as :

NNP at fc = private consumption expenditure + government consumption expenditure + investment expenditure + net exports

NNP at fc= C + G + I + (X-M)

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