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What is Value Added Method for National Income about?
The Value Added Method calculates national income by summing the net value added by each producing unit in an economy, avoiding double-counting. It involves identifying production units, calculating Gross Value Added for each sector, and then deriving National Income by adjusting for depreciation and net indirect taxes. Precautions include excluding intermediate goods, second-hand sales, and non-market services while including paid services and changes in inventory.
- Author
- mishraakashji
- Language
- EN