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Question
Calculate (a) net national product at the market price and (b) gross national disposable income:
| (Rs in crores) | ||
| 1 | Gross domestic fixed capital formation | 400 |
| 2 | Private final consumption expenditure | 8,000 |
| 3 | Government final consumption expenditure | 3,000 |
| 4 | Change in stock | 50 |
| 5 | Consumption of fixed capital | 40 |
| 6 | Net indirect taxes | 100 |
| 7 | Net exports | (-) 60 |
| 8 | Net factor income to abroad | (-) 80 |
| 9 | Net current transfers from abroad | 100 |
| 10 | Dividend | 100 |
Solution
1) NNPMP= Private final consumption expenditure + Government final consumption expenditure + Gross domestic fixed capital formation + Change in stock + Net exports - Consumption of fixed capital – Net factor income abroad
= 8,000 + 13,000 + 400 + 50 + (- 60) -40 - (- 80)
= Rs 11,430 crores
2) Gross National Disposable Income = NNPMP +Net current transfers from abroad
= 11,430 + 100
= Rs 11,530 crores
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