Increase in the price of stocks lying with a trader included/excluded in the National Income
Determine the following item included/excluded in the National Income
Increase in the price of stocks lying with a trader included/excluded in the National Income
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Answer:-
No,
It will not be included in the national income as it does not amount to any flow of goods.
Explanation:-
An increase in the price of lying stock is due to a rise in market price. The quantity of the goods remains the same.
It implies no further production.
Thus it does not add to any flow of goods in the economy and is not included in national income.
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