Question

Q24.ii Calculate GNP MP & NNPTC;
i) Private final Consumption expenditure →600
ii) Net current transfers to abroad 20
iii) Net factor income to abroad → (-) 20
Govt. final consumption expenditure → 200
Net indirect taxes -100
vi) Net domestic capital formation 200
Current transfers from Govt. 50
viii) Depreciation 100
ix) Net export → 30
x) Income accruing to Govt. →80
vii)​

Answer 1

Answer:

$GNP_{MP}$ = 1150

$NNP_{FC}$ = 1150

Explanation:

$GNP_{MP}$

= Private final consumption exp. + Gov. final consumption exp. + Net domestic capital formation + Net exports + Depreciation - Net factor income to abroad.

= 600 + 200 + 200 + 30 + 100 -(-) 20

= 1130 + 20

= 1150

$NNP_{FC}$

= - depreciation - net indirect taxes.

= 1150 - 100 - (-) 100

=1050 + 100

= 1150