"We use inventory investment in calculat

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Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

"We use inventory investment in calculating National Income." In which of the following methods is inventory investment used?

Options:

Product method and Expenditure method

Expenditure and income method

Product method, income method and expenditure method

Value added and income method

Correct Answer:

Product method and Expenditure method

Explanation:

Inventory investment is used in both Product method (also known as value added method) and Expenditure method while calculating National Income.