Question

Calculate gross national product at factor cost from the following data by a. Income method b.expenditure method

Answer 1

Answer:

Income Method

GNPFC = compensation for employees + Divided + Rent + interest + undistributed profits + corporate tax + consumption of fixed capital + Net factor income from abroad.

b.expenditure method

GNPFC = Private final Consumption Expenditure + Government Final.Consumption: Expenditure + Net Factor income from Abroad - Net Imports + Gross Domestic capital formation - Net indirect taxes