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Calculate 'National Income' and 'Gross National Disposable Income' from the Following: Net Imports Net Current Transfers to Abroad Net Domestic Fixed Capital Formation Government Final Consumption Expenditure Private Final Consumption Expenditure - CBSE (Arts) Class 12 - Economics

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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

Solution

NNPFC = 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) = NNPFC + NIT − Net current transfers to abroad

= 1050 + 100 − (−10)

= 1160 arab

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Solution Calculate 'National Income' and 'Gross National Disposable Income' from the Following: Net Imports Net Current Transfers to Abroad Net Domestic Fixed Capital Formation Government Final Consumption Expenditure Private Final Consumption Expenditure Concept: Aggregates Related to National Income - Gross National Product (GNP).
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