Which of the following is NOT a method of measuring national income?
A. Balance of payments method
B. Expenditure method
C. Income method
D. Product method
Answer: Option A
Solution (By JKSSB Mock Tests)
National income is measured by product (value added), income and expenditure methods. Balance of payments is used for recording international transactions, not for measuring national income.
Explanation:
Potential output is the level of real GDP that can be sustained over the long term without generating inflationary or deflationary pressures, given existing resources and technology.
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