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Calculate 'Net Domestic Product at Market Price' and 'Gross National Disposable Income': - Economics

Calculate 'Net Domestic Product at Market Price' and 'Gross National Disposable Income':

    (Rs crores)
1 Private final consumption expenditure 400
2 Opening stock 10
3 Consumption of fixed capital 25
4 Imports 15
5 Government final consumption expenditure 90
6 Net current transfers to rest of the world 5
7 Gross domestic fixed capital formation 80
8 Closing stock 20
9 Exports 10
10 Net factor income to abroad (-)5

 

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Solution

Net Domestic Product at Market Price = Private final consumption expenditure + Government final consumption expenditure + Gross domestic fixed capital formation + change in stock + Net exports - depreciation

= 400 + 90 + 80 + (20 − 10) + (10 − 15) − 25

= Rs 550 crore

Gross National Disposable Income = Net domestic product at market price − Net factor
income to abroad + Consumption of fixed capital − Net current transfers to rest of the world

= 550 − (−5) + 25 − 5 

= Rs 575 crore

Concept: Gross and Net Domestic Product (GDP and NDP)
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