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How to calculate national income by …

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How to calculate national income by expenditure method
  • 1 answers

Yogita Ingle 5 years, 3 months ago

The expenditure method of calculating National Income or Gross Domestic Product takes into account the final goods and services produced in a country during a period of time.

The formula for calculating national expenditure is

National Income = C + I + G + (X−M)

Where,

C = Consumption by residents of the nation

I = Investment

G = Government spending

X = Exports

M = Imports

Or  National Income = C + I + G + NX

Where,

Net Exports (NX) = Exports – Imports

 

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