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explain briefly the steps taken in estimating National income by value added method also explain any two precautions regarding to be taken in this method

Posted by Yati Jain 5 years, 8 months ago

CBSE > Class 12 > Economics

1 answers

Keshav Kabra 5 years, 8 months ago

Step to calculate national income through value added method:- 1.calculate value added method of different sector Value added:- value of outputs - intermediate consumption 2. Calculate GVAmp GVAmp=GDPmp 3. Calculate national income NNPfc=GDPfc - depreciation +NFIA - NIT precaution:- 1. intermediate goods are not included 2. Sale and purchase of seconds hand good are not included 3. Domestic services are not included

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