Question

What is the formula of GDPmp and GDPfc?

Answer 1

The equations of GDP and market prices (GDP_MP), and GDP at factor cost (GDP_FC) are as follows:

GDP_MP = C + I + G + X-M

Where C is consumption expenditure,

I is investment expenditure;

G is the government’s consumption and investment expenditure;

X is exported and M is imported.

GDP_FC = GDP_MP – NIT (where, NIT is net indirect taxes).

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