National income measures

Multiple Choice

a. nominal GDP after it has been inflated or deflated for changes in the value of the dollar.

b. the after-tax income of resource suppliers.

c. the total of all sources of private income plus government revenue from taxes on production and imports.

d. the amount of wage, rent, interest, and profits income actually received by households.

A

Explanation:

National income measures the monetary value of the flow of output of the goods and services produced in an economy over some time.

The uses of national income statistics:

To see the rate of economic growth To see the changes in average living standard To see the distribution of the income

There is three-way to calculating GDP:

National output is equal to the national expenditure is equal to national income