Question

Q.1 Calculate the GDP at MP by using the expenditure method.

S. No. Items Amount ₹ (in crores)

(i) Final consumption expenditure 500


(ii) Final investment expenditure 600


(iii) Net exports 300

Answer 1

Answer:

National income = C + I + G + (X − M)

Where,

C = Consumption by residents of the nation

I = Investment

G = Government spending

X = Exports

M = Imports

Or National income = C + I + G + NX

Where,

Net exports (NX) = Exports – Imports

the ans. is 1400