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There are three methods of calculation of national income;
1] Income approach
This method takes national income as the sum of all incomes earned by factors of production in the economy.These includes gross trading profits of companies surpluses of public corporations and personal income.
2]Expenditure method.
This is where the government arrives at national income by adding all expenditure on final goods and services in the economy
3]Product value added method
This is where national income is assumed to be the value added to output by all enterprises.
mkajuju answered the question on February 16, 2018 at 12:30
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