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Write down the three identities of calculating the GDP of a country by the three methods. Also briefly explain why each of these should give us the same value of GDP. |
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Answer» Solution :National INCOME `equiv` National expenditure. NI by three methods is same. The only difference is that product method, NI is calculated at production level, with income METHODE NI is measured at DISTRIBUTION level and with expenditure methode, NI is measured at disposal level. It is because value of production causes generation of income which further causes expenditure. |
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