Question
What is the problem with calculating national income with various methods?

Answer

Different methods of calculating national income:
There are different methods used to calculate national income across the world. The most important among them are:
$(a)$ Production method,
$(b)$ Income method and
$(c)$ Expenditure method.
  • The measurement of national income varies based on the method of calculation used by the country.
  • Different countries adopt different methods to calculate national income. Hence, comparing the economic development through national income as an indicator becomes difficult.

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