(a) Derive $N D P_{f c}$ from $G D P_{m p .}$

(b) Calculate gross fixed capital formation:

$N D P_{f c} = 5500$

Depreciation = 100

Private final consumption expenditure =1200

Government final consumption expenditure =1000

Net imports =700

Subsidies =40

Decrease in stock =-200

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Solution

(a) $G D P_{m p .} = N D P_{f c} + D e p r e c i a t i o n + N I T$

(b) $G D P_{m p .} = N D P_{f c} + D e p r e c i a t i o n + N I T$

$= 5500 + 100 + (0 - 40) = 5560$ crores

$G D P_{m p .}$ = Private final consumption expenditure + Government final consumption expenditure + Gross fixed capital formation + Change in stock + Net exports

5560=1200+1000+gross fixed capital formation +200+ (-700)

Gross fixed capital formation =3860 crores

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Q. From the following data, calculate National Income by Income method and Expenditure method:

	Item	Rs. in crores
(i)	Compensation of employees	700
(ii)	Government final consumption expenditure	750
(iii)	Net factor income from abroad	(-) 10
(iv)	Net exports	(-) 15
(v)	Profits	600
(vi)	Net indirect taxes	60
(vii)	Mixed income of self-employed	350
(viii)	Rent	200
(ix)	Interest	310
(x)	Private final consumption expenditure	1100
(xi)	Net domestic capital formation	385
(xii)	Consumption of fixed capital	65

Find the Final Gross National Product at Market Price and Private Income:

$\begin{matrix} (Rs. in crores) (i) Private final consumption expenditure & 800 (ii) Net current transfers to abroad & 20 (iii) Net factor income to abroad & (-)10 (iv) Government final consumption expenditure & 300 (v) Net indirect tax & 150 (vi) Net domestic capital formation & 200 (vii) Current transfers from government & 40 (viii) Depreciation & 100 (ix) Net imports & 30 (x) Income accruing to government & 90 (ix) National debt interest & 50 \end{matrix}$

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(a) Derive NDPfc from GDPmp. (b) Calculate gross fixed capital formation: NDPfc=5500 Depreciation = 100 Private final consumption expenditure =1200 Government final consumption expenditure =1000 Net imports =700 Subsidies =40 Decrease in stock =-200

(a) Derive $N D P_{f c}$ from $G D P_{m p .}$

(b) Calculate gross fixed capital formation:

$N D P_{f c} = 5500$

Depreciation = 100

Private final consumption expenditure =1200

Government final consumption expenditure =1000

Net imports =700

Subsidies =40

Decrease in stock =-200