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Calculate 'Net National Product at Market Price' and 'Gross National Disposable Income' from the Following: Closing Stocks Consumption of Fixed Capital Private Final Consumption Expenditure Exports Opening Stock - Economics

Calculate 'Net National Product at Market Price' and 'Gross National Disposable Income' from the following:

    (Rs in Arab)
1 Closing stocks 10
2 Consumption of fixed capital 40
3 Private final consumption expenditure 600
4 Exports 50
5 Opening Stock 20
6 Government final consumption expenditure 100
7 Imports 60
8 Net domestic fixed capital formation 80
9 Net current transfers to abroad (-)10
10 Net factor income to abroad 30
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Solution

NNPMP =Private final consumption expenditure+ Government final consumption expenditure + (Net domestic fixed capital formation + Consumption of fixed capital)+ (Closing Stock - Opening Stock)+ (Exports - Imports) - Consumption of fixed capital - Net factor income to abroad

= 600 + 100 + 80 + 40 + (10 - 20) + (50 - 60) - 40 – 30

= Rs 730 arab

Gross National Disposable Income = NNPMP - Net current transfers to abroad+ Consumption of fixed capital

= 730 - (-10) + 40

= Rs 780 arab

Concept: Aggregates Related to National Income - Net National Product (NNP)
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