Is purchase of equipments for installation in a factory included/excluded in National Income?
Is purchase of equipments for installation in a factory included/excluded in National Income?
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Yes,
It will be included in the national income as it is a part of capital formation.
It adds to the present stock of capital during the year and leads to capital formation.
Capital formation is included in national income through the expenditure method.
Anurag Pathak Changed status to publish
