income method

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The procedure of measuring domestic product by adding the factor incomes received by various members of the economy. This approach is largely based on information derived from the tax system. Its results are compared with the figures produced by the expenditure method, which uses information on expenditures by various sectors of the economy including consumers, investors, and the government, and the output method, which uses information on the net outputs of various sectors of the economy.

Subjects: Economics.

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