Question

calculate national income from expenditure method. private final consumption expenditure 2000, government final consumption expenditure 700 , gross domestic capital formation 200 ,net exports 300, national income from abroad 400, consumption fixed capital 200 , net indirect tax 50​

Answer 1

Answer:

1 answer

National income (expenditure method) = Govt. final consumption expenditure+Net domestic capital formation+Net exports+Private final consumption expenditure-Net indirect taxes-Net factor income to abroad=750 + 385 - 15 + 1100 - 60 - 10 = 2150 crores.

Answer 2

GDP at MP = Private Final Consumption Expenditure + Government Final Consumption Expenditure + Gross domestic capital information + Net export

= 2,000 + 700 + 200 + 300

= 3,200 crores

NNP at FC or National Income = GDP at MP - consumption of fixed capital + Net factor income from abroad - Net indirect tax

= 3,200 - 200 + 400 - 50

= 3,350 crores