Methods of measuring national income

Ahmed Majed Badawi Hamza
Supervisor: Prof. Dr. Abd Ali Kazim Al-Fatlawi

Methods of measuring national income are as follows
• Product method: It depends on the product’s net added value in all production stages. This method divides the economy into industrial sectors, such as agriculture and transportation. (Issa, 2016: 134)
• Income method: It clarifies the distribution of national income among different income groups. National income is measured in this way by adding the income generated by individuals and companies before adding taxes, such as salaries, rents of buildings and lands, and profits on capital, in a specific period of time known as the accounting period, which is usually one year.

• Expenditure method: National income is measured by adding consumer expenditures and company investments to net exports and government expenditures. (Al-Hawri and Al-Dabbagh, 2005: 110)