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Which method of calculating the national income is also known as ‘Industrial Origin Method’?
Expenditure Method
Income Method
Value Added Method
Monetary Measures Method
- Expenditure Method: This calculates national income by summing up all expenditures in the economy. It includes consumption, investment, government spending, and net exports.
- Income Method: This method adds up all the incomes earned by individuals and businesses, like wages, rent, interest, and profits.
- Value Added Method: This method, also known as the "Industrial Origin Method," calculates national income by adding the value added at each stage of production. It focuses on the contributions of different industries to the economy.
- Monetary Measures Method: This is generally not recognized as a standard method for calculating national income and seems less relevant here.
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