Answer: Option B
Answer: (b)
Primarily there are three methods of measuring national income. Which method is to be employed depends on the availability of data and purpose. The methods are product method, income method and expenditure method.
According to the production method, the total value of final goods and services produced in a country during a year is calculated at market prices.
According to this method, only the final goods and services are included and the intermediary goods and services are not taken into account.
In this method, National Output = National Expenditure (Aggregate Demand) = National Income.