Calculate national income in NNPFC
imports 20
gross fixed capital formation 120
private final consumption expenditure 500
net factor income from abroad 10
indirect tax 100
change in stock 20
subsidy 20
exports 10
government final consumption expenditure 60
consumption of fixed capital 10
Answers
1. Income Method GNPFC = Compensation of employees + Rent + Interest + Undistributed Profits + Dividend + Net
Factor Income from Abroad + Consumption of fixed capital = 1850 + (400 +500 +900 + 200) + (-) 50+ 100 = 3900
CRORE Note: o GNPFC = NNPFC + Consumption of fixed capital o NNPFC = Compensation of employees + Rent +
Interest + Undistributed Profits + Dividend + Net Factor Income from Abroad o Compensation of employees is
income from work which includes wages and salaries in kind and cash, and contribution to social securities
ii. Expenditure Method GNPFC = GNPMP - Net Indirect Taxes Private Final consumption Expenditure + (Net
Domestic capital formation + consumption of fixed capital) + Govt. Final consumption Expenditure + Net Exports +
Net Factor Income from Abroad - Net Indirect Taxes = 1100 +2600 + (500 +100) + (-) 100 + (-)50 – 250 = 3900
CRORE