An essential method in economics for determining the general level of economic activity inside a nation is the assessment of national income using the expenditure method. It entails calculating overall spending and its contribution to national revenue by examining the various expenditure components, such as consumption, investment, government expenditures, and net exports. An overview of the significance and uses of the expenditure approach for measuring national income are given in this chapter. The spending method provides a thorough framework for comprehending and assessing the functioning of an economy. It represents household spending patterns and offers insights into consumer behavior and preferences by taking consumption expenditure into account.
Aggregate Demand, Consumption Investment, Expenditure Method, Government Spending, National Income.
[Dr. Mounica Vallabhaneni (2022) Measurement of National Income Expenditure Method] (ISSN 2347 - 5552). www.ijircst.org
Dr. Mounica Vallabhaneni
Assistant Professor, Department of Commerce And Economics, Presidency University, Bangalore, India,
Email Id-mounicav@presidencyuniversity.in
