which measure of national income and product accounts do you favour and why?

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Expert Solution

There are different measures of the national income, important for the different considerations and analysis. So, there is no one fit for all type of national income that can be said that it is most important in all analysis. But, GNP is one measure, that is the basis of different analysis and provide basis for the finding of other income aggregates.
GNP is the most important national income measure if the focus of the analysis is to calculate the total income earned by all the individuals of the country regardless of the place of work. For example, if a country like Mexico wants to analyze the overall income of the country, then it is GNP as a sizable workforce work in the countries likes USA and Canada. So, GNP will consider the income earned by their nationals in foreign countries. But, such considerations are missing in GDP consideration. So, GNP becomes very important.
Though, measuring the well-being of the population can be explained by personal income earned by the population and its growth over a period of time. Here, it is the aggregate of the income as per capita income does not explain the gulf of income inequality among the different classes of people. So, personal income and its rise, gives general indicator towards the rise of real personal income of the people of the country.
It is the reason that different measures explain different aspects of the economy.

Rahul Sunny answered 1 year ago

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