Is addition to stocks during a year included/excluded in national income?
Is addition to stocks during a year included/excluded in national income?
Anurag Pathak Changed status to publish December 9, 2023
Yes,
It will be included in the national income as it is a part of the gross domestic capital formation.
Explanation:-
The addition to stocks during a year is the gross domestic capital formation.
The gross domestic capital formation is added to the national income through the expenditure method.
Anurag Pathak Changed status to publish December 9, 2023
