What is Measuring National Income:
Measures of national income and output are used in economics to estimate total economic activity in a country or region, including gross domestic product (GDP), gross national product (GNP), and net national income (NNI). In nutshell it is a measure how much output, spending and income has been generated in a given time period.
1.Output Method: The total value of the output of goods and services produced in India. It is finding the total output of a nation by directly finding the total value of all goods and services a nation produces. In this method only the final value of a good or service is included in total output.
2. Income Method: The total income generated through production of goods and services. It is finding the total output of a nation by finding the total income received by the factors of production owned by that nation.
3. Expenditure Method: The total amount of expenditure taking place in the economy. It is finding the total output of a nation by finding the total amount of money spent. GDP = C + I + G + (X - M).