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Question
Calculate 'Net Domestic Product at Market Price' and 'Gross National Disposable Income':
| (Rs crores) | ||
| 1 | Private final consumption expenditure | 400 |
| 2 | Opening stock | 10 |
| 3 | Consumption of fixed capital | 25 |
| 4 | Imports | 15 |
| 5 | Government final consumption expenditure | 90 |
| 6 | Net current transfers to rest of the world | 5 |
| 7 | Gross domestic fixed capital formation | 80 |
| 8 | Closing stock | 20 |
| 9 | Exports | 10 |
| 10 | Net factor income to abroad | (-)5 |
Solution
Net Domestic Product at Market Price = Private final consumption expenditure + Government final consumption expenditure + Gross domestic fixed capital formation + change in stock + Net exports - depreciation
= 400 + 90 + 80 + (20 − 10) + (10 − 15) − 25
= Rs 550 crore
Gross National Disposable Income = Net domestic product at market price − Net factor
income to abroad + Consumption of fixed capital − Net current transfers to rest of the world
= 550 − (−5) + 25 − 5
= Rs 575 crore
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