Growth Rate of National Income :
- If the rate of rise in national income is high the development rate is said to be high and if the rate of rise in national income is low the rate of development is said to be low.
- If the rate of national income does not rise, the development is called stagnant.
- If the rate of national income decreases, the development is said to be negative.
- For this indicator, national income is calculated not at current prices but at
- constant prices.
Limitations of National Income:
- It is difficult to calculate true national income.
- The rate of ED cannot be understood only by just knowing the national income and hence the extent of the population should also be known.
- There are different methods used to calculate national income across the world.