Measurement of National Income:

National Income can be measured using three main approaches.

1. Production (Output) Approach:

   • This approach measures National Income by calculating the total value of goods and services produced in an economy during a specific time period. It focuses on the output of different sectors like agriculture, industry, and services.
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2. Income Approach:

   • This approach measures National Income by summing all the income earned by individuals and firms in the economy. It includes wages, profits, rents, and interest payments.

3. Expenditure Approach:

   • This approach measures National Income by calculating the total spending on final goods and services in the economy. It includes consumption, investment, government spending, and net exports (exports minus imports).