Question

what is the formula of GDPmp and GDPfc? plz...help me for this que. I'll bark you as brain list....

Answer 1

Hello !

⇒GDP is calculated at the market price (GDPmp), which signifies that the value of production is calculated by multiplying the price that buyers pay and not the price which producing units actually receive. The price received by the production units equals market price less indirect taxes.

Formula:

GDP (gross domestic product) at market price = value of output in an economy in the particular year – intermediate consumption at factor cost = GDP at market price – depreciation + NFIA (net factor income from abroad) – net indirect taxes.

⇒GDPFC= NDPFC +Depreciation .

Hope It Helps  u :)

Answer 2

GDPMP = C + I + G + X-M and GDPFC = GDPMP – NIT are the formulas.

• GDPMP or Gross Domestic Product at Market Price is a combination of consumption (C) and income expenditure (I) along with the government's income and expenditure (G).

• The formula is GDPMP = C + I + G + X-M, X = exported and M = imported

• GDPFC or Gross Domestic Product at Factor cost is a combination of GDPMP along with net indirect taxes or NIT.

• The formula is GDPFC = GDPMP – NIT