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The National Income Account of any country is used as a system of book keeping whereby the government records the extent to which the country grows in economic terms within a specified time frame. The National Income account is used as a reflection of the standard of living of the people of the country and to depict how developed and economically advanced the country really is but it can be questioned to be the authentic measure to analyze the level of the standard of living of the people. This is due to various limitations of the account.

The first limitation that can be drawn is the fact that although the National Income Account measures the level of Gross Domestic Product (GDP) in a country, it does not account for the differences and the distribution of the income. It gives us an overall picture of the average...
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