Question 47
National IncomeUse the above diagram to answer questions 46 to 48. In the diagram, (I) refers to the calculation of national income through the
- A.expenditure approach
- B.input-output approach
- C.flow of funds approach
- D.income approach
- E.output approach.
Show the answer and explanation
Answer: D (income approach)
Explanation
Flow (I) is wages, interest and rent paid to households, so adding it up is the income approach.