Question

Calculate 'National Income' and 'Net National Disposable Income' from the following

		(Rs in Arab)
1	Net change in stock	50
2	Government final consumption expenditure	100
3	Net current transfers to abroad	30
4	Gross domestic fixed capital formation	200
5	Private final consumption expenditure	500
6	Net imports	40
7	Depreciation	70
8	Net factor income to abroad	(-)10
9	Net indirect tax	120
10	Net capital transfers to abroad	25

Answer 1

NNP_fc= Private final consumption expenditure + Government final consumption expenditure + Gross domestic fixed capital formation + Net change in stocks - Net imports - Depreciation - Net indirect tax - Net factor income to abroad

= 500 + 100 + 200 + 50 - 40 - 70 - 120 - (-10)

= Rs 630 Arab

Net National Disposable Income = NNP_fc + NIT - Net current transfers to abroad

= 630 + 120 - 30

= Rs 720 Arab