Why is national income treated as an indicator of economic performance rather than only a sum of incomes?
Answer and explanation
Correct answer: Because it shows the aggregate condition of output, income, and economic activity
National income records the monetary value of the final goods and services produced and the incomes generated in an economy during a period. Its movement provides evidence about the scale and direction of aggregate economic activity. However, it should be supplemented by distribution, employment, and price information.
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What is the correct answer to this question?
Because it shows the aggregate condition of output, income, and economic activity
Why is this the correct answer?
National income records the monetary value of the final goods and services produced and the incomes generated in an economy during a period. Its movement provides evidence about the scale and direction of aggregate economic activity. However, it should be supplemented by distribution, employment, and price information.
Which subject and chapter does this question cover?
This is a Class 11 Economics question. Chapter: National Income and Related Aggregates.
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