Calculate National Income by income method and expenditure method.
Particulars Rs. in crores
(i) Government final consumption expenditure 100
(ii) Interest, rent and profits 920
(iii) Gross Capital formation 620
(iv) Net exports (-) 10
(v) Change in stock 100
(vi) Net Factor income from abroad (-) 10
(vii) Subsidies 20
(viii) Private Final Consumption expenditure 800
(ix) Indirect tax 120
(x) Consumption of fixed Capital 60
(xi) Mixed income of the self employed 60
(xii) Compensation of employees 370
Answers
Explanation:
search-icon-header
Search for questions & chapters
search-icon-image
Class 12
>>Economics
>>National Income Accounting
>>Calculating National Income
>>Calculate National Income using Income M
Question
Bookmark
Calculate National Income using Income Method and Expenditure Method.
Particulars ₹ in crores
(i) Government final consumption expenditure 7,351
(ii) Indirect tax 8,834
(iii) Gross fixed capital formation 13,248
(iv) Mixed income of the self employed 28,267
(v) Subsidies 1,120
(vi) Change in stock 3,170
(vii) Rent, interest and profits 9,637
(viii) Consumption of fixed capital 4,046
(ix) Private Final Consumption Expenditure 51,177
(x) Imports of goods and services 5,674
(xi) Exports of goods and services 4,812
(xii) Net factor income from abroad (-)255
(xiii) Compensation of employees 24,420
Medium
Solution
verified
Verified by Toppr
Using Expenditure Method,
GDP at MP = Private Final Consumption Expenditure + Gross Fixed Capital Formation + Change in stock + Government Final Consumption Expenditure + Net Exports (Exports - Imports)
= 51,177+13,248+3,170+7,351+(4,812−5,674)=74,084
NNP at FC = GDP at MP - Consumption of Fixed Capital + Net Factor Income From Abroad - (Indirect Tax - Subsidies)
= 74,084−4,046+(−255)−(8,834−1,120)
= 62,069 crores
Using Income Method,
NDP at FC = Compensation of Employees + Rent, Interest and Profits + Mixed Income of the Self Employed
= 24,420+9,637+28,267
= 62,324
NNP at FC = NDP at FC + Net Factor Income From Abroad
= 62,324+(−255)
= 62,069 crores