National Aggregates

National Aggregates - income are not completely resistant...

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National Aggregates: National income is the primary macro aggregate. But measurement of national income is a highly complicated activity. This is clear from the definition of national income stated by Alfred Marshall. Accordingly, in a simplified form we have, National income is the money value or market price value of all the goods and services produced by the national citizens of a country during every financial year . Several terms in this definition such as 'money value', 'market price', 'all goods and services', 'national citizens' result into variety of conceptual (related to definition) and practical difficulties. Moreover, the statistical methods employed for the purpose of the measurement of national
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Unformatted text preview: income are not completely resistant to errors. Consequently what we expect is an approximation and a less exact value of national income than the value of millions of economic activities actually performed by numerous citizens of the country. One way of minimizing the error element is to measure national income employing various approaches and express them in distinct national aggregates. All these national aggregates are however mutually related and serve the purpose of a self correcting device of aggregative values to make them as accurate as possible....
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