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

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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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