Sandeep Garg Macroeconomics Class 12: Chapter 3 National Income and Related Aggregate

Sandeep Garg Class 12 Macroeconomics Solutions Chapter 3 National Income and Related Aggregate is explained by the expert Economic teachers from the latest edition of Sandeep Garg Macroeconomic Class 12 textbook solutions. We at BYJU’S provide Sandeep Garg economics class 12 Solutions to give comprehensive insight about the subject to the students. These insights help as a priceless benefit to students while completing their homework or while studying for their exams. There are numerous concepts in economics, but here we provide you the solution from National Income and Related Aggregate, which will be useful for the students to score well in the board exams.

Sandeep Garg Solutions Class 12 – Chapter 3- Part B

Question 1

Calculate Demostic Income or NDP at FC

Particulars ₹ in crores
GNP at MP

Subsidies

Depreciation

Net Factor income from abroad

Indirect Tax

6,000

200

100

400

300

Solution:

NDP at FC

= GNP at MP- Depreciation-Net Factor income from abroad- (Indirect tax-Subsidies)

= 6,000-100-400- (300-200)

= ₹ 5,400 crores

Question 2

Calculate GNP at MP

Particulars ₹ in crores
Domestic Income or NDP at FC

Depreciation

Indirect Taxes

Net Factor income to abroad

3,200

400

70

50

Solution:

GNP at MP

= NDP at FC + Depreciation – Net Factor income from abroad + Indirect tax

=3,200 + 400-50 + 70

= ₹3,620 crores

Question 3

Calculate National Income or NNP at FC

Particulars ₹ in crores
GDP at MP

Consumption of fixed capital

Goods and services tax

Factor income from abroad

Subsidies

Factor income to abroad

5,500

300

120

150

70

250

Solution:

National Income or NNP at FC

= GDP at MP -M Consumption of fixed capital + (Factor income from abroad – factor income to abroad) – (Goods and Services tax – Subsidies)

=5,500 – 300 + (150-250) – (120-70)

= ₹ 5,050 crores

Explore link:Circular Flow of Income Solutions

Question 4

Define domestic income.

Ans: Domestic income is the net money value of all the final goods and services produced within the domestic territory of a country during a period of one year.

Question 5

When will GDP of an economy be equal to GNP?

Ans: GDP and GNP will be equal when the net factor income from abroad is zero

Question 6

In which type of economy, domestic income will be equal to national income?

Ans: Closed economy

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