According to the income approach to national income measurement, the national income of a country is equal to?
the value of all output produced in the country over the relevant period of time at market prices
the value of output at factors cost
the value added to production
C +I + G
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Discussions (5)
The parts of the formula are simple: C = total spending by consumers. I = total investment (spending on goods and services) by businesses. G = total spending by government (federal, state, and local)
D very correct
option D is correct.
The income approach to measuring the gross domestic product (GDP) is based on the accounting reality that all expenditures in an economy should equal the total income generated by the production of all economic goods and services. It also assumes that there are four major factors of production in an economy and that all revenues must go to one of these sources.
Therefore, by adding together all of the sources of income, a quick estimate can be made of the total production value of economic activity over a perio
