Explain the methods of calculating National income.

Following are the Methods of Calculating National Income:

a. Income method is a technique used to calculate national income of an economy. It accounts for all the payments and income received by people in an economy.

b. Expenditure method, it calculates the total expense of people on goods, services and investments.

c. Product method, it is the total value of goods and services produced in the geographical boundary of an economy.

In India, product and income method is widely used.