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Sum

** Answer the following question.**

From the follow ing data, calculate GNP_{MP} and NNP_{FC} by Expenditure Method.

(i) Mixed-income of self-employed | 450 crores |

(ii) Compensation of employees | 550 crores |

(iii) Private final consumption expenditure | 1000 crores |

(iv) Net factor income from abroad | -20 crores |

(v) Net indirect taxes | 150 crores |

(vi) Consumption of fixed capital | 170 crores |

(vii) Net domestic capital formation | 380 crores |

(viii) Net exports | -30 crores |

(ix) Profits | 400 crores |

(x) Rent | 150 crores |

(xi) Interest | 200 crores |

(xii) Government final consumption expenditure | 550 crores |

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#### Solution

**Expenditure Method:**

GDP_{MP} = Private final consumption expenditure + Government final consumption expenditure + Gross Domestic Capital Formation + Net Export

1000 + 550 + (380 + 170) + (-30) = ₹ 2,070

NNP_{FC} = GDP_{MP} – Depreciation + NFIA – NIT

2070 – 170 + (-20) – 150 = ₹ 1730

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