Question

1) calculated GNP mp and NNP fc....a)private final consumption expenditure =600 b) net current transfer to abroad=20 c) net factor income to abroad = -20 d) govt. final consumption expenditure = 200 e) net indirect taxes = 100 f) net domestic capital formation = 200 g) current transfer from govt.= 50 h) depreciation = 100 i) net export = 30 j) income accruing to govt. = 80​

Answer 1

Answer:

$GNP_{MP}$ = 1150

$NNP_{FC}$ = 1150

Explanation:

$GNP_{MP}$

= Private final consumption exp. + Gov. final consumption exp. + Net domestic capital formation + Net exports + Depreciation - Net factor income to abroad.

= 600 + 200 + 200 + 30 + 100 -(-) 20

= 1130 + 20

= 1150

$NNP_{FC}$

= - depreciation - net indirect taxes.

= 1150 - 100 - (-) 100

=1050 + 100

= 1150