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# Calculate National Income and Personal Disposable Income - CBSE (Arts) Class 12 - Economics

ConceptAggregates Related to National Income - Personal Disposable Income

#### Question

Calculate National Income and Personal Disposable Income:

 (Rs crore) (i) Corporate tax 100 (ii) Private final consumption expenditure 900 (iii) Personal Income tax 120 (iv) Government final consumption expenditure 200 (v) Undistributed profits 50 (vi) Change in stocks (-)20 (vii) Net domestic fixed capital formation 120 (viii) Net imports 10 (ix) Net indirect tax 150 (x) Net factor income from abroad (-)10 (xi) Private income 1000

#### Solution

GDPMP = Private Final Consumption Expenditure + Government Final Consumption Expenditure + (Net Domestic Fixed Capital Formation + Depreciation + Change in Stock) − Net Imports

= 900 + 200 + (120 + 0 + (−20) − 10 = 1,190

NNPFC = GDPMP + Net Factor Income from Abroad – Net Indirect Tax − Depreciation

= 1,190 + (−10) − 150 − 0 = 1,030

National Income = Rs 1,030 crore

Personal Disposable Income = Private Income − Undistributed Profits − Corporate Tax − Personal Direct Taxes

= 1,000 − 50 − 100 − 120 = 730

= Rs 730 crore

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Solution Calculate National Income and Personal Disposable Income Concept: Aggregates Related to National Income - Personal Disposable Income.
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