Economy, asked by decembericecream04, 10 days ago

Question : calculate depreciation from the following data .
gross value of output : 300
Net value added factor cost : 100
subsidies : 15
intermediate consumption: 185 ​

Answers

Answered by muskangoel01
2

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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