News Approaches Or Methods Of National Income Accounting - Income In Addition To Production Approach

Four approaches are used inwards National Income accounting too they are:
1. Income Approach
2. Product Approach

3. Expenditure Approach

4. Value Added Approach

1. Income Approach of NI Accounting
This approach is based on the estimation of income of diverse factors of production. Income method considers payments made to all productive resources of the province inwards the shape of rent, wage, involvement too profit. Thus,

GDI = Rent Wage Interest Corporate Profits along amongst Indirect Taxes too Depreciation
GNI = GDI NFIA
NNI = GNI-Depreciation

▶ Read to a greater extent than nigh Income Approach

2. Product Approach of NI Accounting
According to this method, national income is measured inwards the shape of full production obtained from each economical sector such equally primary, secondary too third sectors.

▶ Read to a greater extent than nigh Product Approach

3. Expenditure Approach

The full expenditure incurred yesteryear the gild inwards a item twelvemonth is added together. This includes personal consumption expenditure, internet domestic investment, regime expenditure on goods too services, internet unusual investment.

Gross National Income= Individual Expenditure Government Expenditure

4. Value Added Method/Approach

The divergence betwixt the value of cloth outputs too inputs at each phase of production is the value added.

All such divergence are added upward for all industries inwards the economy, to brand it at the GDP