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ELEMENTS OF NATIONAL INCOME ACCOUNTING
CONTENT
- Worked Examples Using the Expenditure Approach
- Calculation on Output Approach and Income Approach
- Problems of Computing National Income
- Uses and Limitations of National Income Estimates
- Structure and Trends of National Income
Worked Examples Using the Expenditure Approach
The following is the trading account for Nigeria in the year 1978 (in millions)
- Citizens private expenditure =
N35m - Government expenditure on goods and services =
N15.6m - Various stocks at home =
N11.8m - Exports income from abroad =
N13.5m - Imports income paid abroad =
N10.4m - Taxes on expenditure =
N7m - Capital consumption =
N5.8m - General subsidies =
N1.3m
From the information given above,
Calculate the national income for Nigeria for the year 1278
Solution
National Income = ₦77.2m – ₦23.2m = ₦54.0m
We can use alternative method with this formula.
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