Is Goods lying within the production boundary included/excluded in national income?
Is Goods lying within the production boundary included/excluded in national income?
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No,
The goods lying within the production boundary will not be included in national income as goods lying within the production boundary are intermediate goods.
Explanation:-
National income only counts the value of the final goods.
The value of the intermediate goods already added to the it.
Thus adding value of the intermediate goods in the national income would lead to double counting.
Anurag Pathak Changed status to publish
