What are the data requirement and outcome of different method of National Income Calculation?

National income can be calculated using three methods: the income method, the output method, and the expenditure method. Each method requires different types of data and yields different outcomes.

1. Income Method: This method calculates national income by adding up all the incomes earned by individuals and businesses in a country. The data required for this method includes wages, salaries, rent, interest, profits, etc. The outcome of this method is the total income earned by all individuals and businesses in a country.

2. Output Method: This method calculates national income by adding up the value of all goods and services produced in a country. The data required for this method includes the value of all goods and services produced in various sectors of the economy such as agriculture, manufacturing, services, etc. The outcome of this method is the total value of all goods and services produced in a country.

3. Expenditure Method: This method calculates national income by adding up all the spending on goods and services in a country. The data required for this method includes consumption expenditure, investment expenditure, government expenditure, and net exports. The outcome of this method is the total spending on goods and services in a country.

Each method should theoretically yield the same result for national income. However, in practice, the results may differ due to statistical discrepancies, differences in data collection methods, and the inclusion or exclusion of certain types of income or expenditure.