Explain the importance of national income.

1.	Explain the importance of national income.
Answer» National income data is very useful for various purposes. It is as follow : For the Economy : National income data are very important for macro economic analysis and performance of the economy. National Policies : National income gives the industrial policy, agricultural policy, export promotion policy etc. Economic Planning : The data of national income is very important tools for long term and short term economic planning e.g. planning for aggregate saving, investment, output, etc. Economic Research : The data of national income is very useful to the research students to study in detail how income is produced, how it is distributed, how much is spent, saved or taxed. Comparison of Standard of Living : Because of national income, it is possible to do comparison between the standard of living of the people of different countries and home country. Distribution of Income : The data of national income is very important to understand the disparities in the income of different sections of the society and to make the policies to reduce the disparities in income. Speed of Economic Growth : Because of national income, it is possible to know the trends or speed of the economic growth of our country in relation to previous years.

Answer»

National income data is very useful for various purposes. It is as follow :

For the Economy : National income data are very important for macro economic analysis and performance of the economy.
National Policies : National income gives the industrial policy, agricultural policy, export promotion policy etc.
Economic Planning : The data of national income is very important tools for long term and short term economic planning e.g. planning for aggregate saving, investment, output, etc.
Economic Research : The data of national income is very useful to the research students to study in detail how income is produced, how it is distributed, how much is spent, saved or taxed.
Comparison of Standard of Living : Because of national income, it is possible to do comparison between the standard of living of the people of different countries and home country.
Distribution of Income : The data of national income is very important to understand the disparities in the income of different sections of the society and to make the policies to reduce the disparities in income.
Speed of Economic Growth : Because of national income, it is possible to know the trends or speed of the economic growth of our country in relation to previous years.

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