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Differentiate between the income approach and expenditure approach to the measurement of national income. Also give the importance of the national income in the economy of a country

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Measuring A Nation's Income

Section: Chapter Questions

Problem 5CQQ

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Question

.Differentiate between the income approach and expenditure approach to the measurement of national income. Also give the importance of the national income in the economy of a country

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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