write down the formula for national income calculation with the help of production method, income method and expenditure method
Answers
Answer:
from value added method/production method :->
first calculate GDPmp = value of output - intermediate cost
NNPfc = GDPmp - depreciation + NFIA - NIT
here if question silent about anything then use :-
value of output = sales + change in stock
change in stock = closing stock - opening stock
sales = price X Quantity
FROM INCOME METHOD :-
NDPfc = C. O. E + O/S + MI
compensation to employees(COE) = wages and salaries in cash + wages and salaries in kind + employers contribution towards social Security scheme
Opreating surplus (OS) = rent/Royalty + profit + interest
profit (if not given) = dividend + corporate tax + retained earnings/undisturbed profits
NNPfc = NDPfc + NFIA
FROM EXPENDITURES METHOD :-
GDPmp = P. F. C. E + G. F. C. E + G. D. C. F + net exports
private final consumption expenditure
government final consumption expenditure
gross domestic capital formation (GDCF)
GDCF = gross fixed capital formation + change in stock
net exports = exports - imports
NNPfc = GDPmp - dep + NFIA - NIT