Is Purchase of a machine by a factory included/excluded in National Income
Purchase of a machine by a factory is included/excluded in National Income
Anurag Pathak Changed status to publish
Yes,
The purchase of a machine by a factory will be included in the National Income as it is a part of the gross domestic capital formation.
In other words, machine purchase by a factory is a final good as it is purchased for investment purpose. The sum of the value of final goods is the part of the National Income.
Anurag Pathak Changed status to publish
