Question

Calculate national by income method and expenditure method Items are private final consumption expenditure 350,govt final consumption expenditure 100,mixed income of self-employe 35, grows domestic fixed capital formation 70,operating surplus 15, compensation of employees 250, closing stock 25, imports 20, Rent 75, depreciation 10, net indirect tax 25, interest 25, net factor income from abroad -5, export 10, profit 100.​

Answer 1

Answer:

Under expenditure method national income is calculated first by adding up all the items of final consumption expenditure and final investment expenditure within the domestic economy The resulting total is called GDP at MR By subtracting depreciation and net indirect taxes from GDP at MP and adding to its net factor ...