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 December 8, 2023
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 December 8, 2023
