Explain five problems experienced when computing national income using the expenditure approach.

      

Explain five problems experienced when computing national income using the expenditure
approach.

  

Answers


gideon
i. Problem of double counting.
ii. Problem of differentiating between final and intermediate expenditure.
iii. Lack of records for subsistence sector/implying expenditure here are more approximations.
iv. Lack of clear/accurate/reliable records of expenditure in the private sector.
v. Problem of fluctuating exchange rates (incase of valuation of imports/exports)
gideon1 answered the question on September 28, 2017 at 05:22


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