CSEET · Economic and Business Environment · National Income Accounting and Related Concepts
Which of the following is NOT one of the three standard methods of measuring national income?
The interest rate method is not a standard way of measuring national income. The three recognised methods are the product or value added method, the income method and the expenditure method, each looking at the same economic flow from a different angle.
- AProduct (value added) method
- BIncome method
- CExpenditure method
- DInterest rate methodCorrect
Explanation
National income is measured by the product (value added) method, the income method and the expenditure method. All three should give the same aggregate in principle. There is no method based on interest rates.
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