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Calculate National Income and Private Income : - Economics

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Calculate National Income and Private Income :

    (Rs crores)
(i) Net imports 5
(ii) Net domestic capital formation 15
(iii) Personal income 90
(iv) National debt interest 10
(v) Corporate tax 25
(vi) Government final consumption expenditure 20
(vii) Net factor income to abroad (−) 5
(viii) Net indirect tax 10
(ix) Undistributed profits 0
(x) Private final consumption expenditure 100
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Solution

National Income = Private final consumption expenditure + Government final consumption expenditure + Net domestic capital formation - Net imports - Net indirect taxes - Net factor income to abroad
National Income = 100 + 20 + 15 - 5 - 10 - (-5)
National Income = Rs 125 crore
Private Income = Personal Income + Undistributed profits+ Corporate tax
Private Income = 90 + 0 + 25
Private Income = Rs 115 crore

Concept: Aggregates related to National Income - Private Income
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