Question

Calculate national income by income and expenditure method
1. Compensation of employees - 250
2. Import - 20
3. Mixed income of self employed 50
4 gross domestic fixed capital formation 120
5 private final consumption expenditure 550
6 consumption of fixed capital 10
7 net factor income from abroad 20
8 indirect taxes 100
9 change in stock 20
10 subsidies 20
11 rent 100
12 interest 200
13 profit 50
14 Export 10
15 Govt. Final consumption expenditure 60

Answer 1

Explanation:

INCOME METHOD

Compensation of employees - 250+1rent 100+ interest 200+profit50+Mixed income of self employed 50=NDPfc

NNPfc=NDPfc+NFYA

650+20=670

EXPENDITURE METHOD

gross domestic fixed capital formation 120+

5 private final consumption expenditure 550+

Govt. Final consumption expenditure 60+

change in stock 20-netimports10=GDPmp=740

NNPfc=GDPmp-dep+NFYA-NIT

NNPfc=740-10+20-80

670=NNPfc