Question : calculate depreciation from the following data .
gross value of output : 300
Net value added factor cost : 100
subsidies : 15
intermediate consumption: 185
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GDPmp -depriciation -net indirect taxes=NDPFC
115-x-(-15)= 100
130-x=100
x=30
depriciation=30
Explanation:
GDPMP=value of output-intermediate consumption
GDPMP= 300-185
GDPMP=115
We subtract intermediate consumption cuz it leads to the problem of double counting and hence over estimates the NY
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