Question

Calculate 'National Income' and 'Gross National Disposable Income' from the following:

		(Rs in Arab)
1	Net imports	60
2	Net current transfers to abroad	(-)10
3	Net domestic fixed capital formation	300
4	Government final consumption expenditure	200
5	Private final consumption expenditure	700
6	Consumption of fixed capital	70
7	Net change in stocks	30
8	Net factor income to abroad	20
9	Net indirect tax	100

Answer 1

NNP_FC = Private final consumption expenditure + Government final consumption expenditure + Net domestic fixed capital formation + Net change in stocks − Net imports − Net indirect tax − Net factor income to abroad

= 700 + 200 + 300 + 30 − 60 − 100 − 20

= 1050 arab

Net National Disposable Income (NNDI) = NNP_FC + NIT − Net current transfers to abroad

= 1050 + 100 − (−10)

= 1160 arab