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Find Gross National Product at Market Price and Private Income - Economics

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Find Gross National Product at Market Price and Private Income:

    Rs. in crore
1 Private final consumption expenditure 800
2 Net Current transaction to abroad 20
3 Net factor income to abroad (-)10
4 Government final consumption expenditure 300
5 Net indirect tax 150
6 Net domestic capital formation 200
7 Current transfer to government 40
8 Depreciation 100
9 Net imports 30
10 Income accruing to government 90
11 National debt interest 50
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Solution

GDPMP = Private final consumption expenditure + Government final consumption expenditure + (Net domestic capital formation + depreciation) − Net imports

           = 800 + 300 + (200 + 100) − 30 = 1.370

           = Rs 1.370 crore

GNPMP = GDPMP − Net factor income to abroad

           = 1,370 −(−10)

           = Rs 1,380 crore

Private Income = GDPMP − Net indirect taxes − Depreciation − Income accruing to government − Net factor income to abroad + Current transfers from Government − Net current transfers to abroad + National debt interest

                      = 1.370 − 150 − 100 − 90 −(−10) + 40 − 20 + 50

                      = Rs 1,110 crore

Concept: Aggregates Related to National Income - Gross National Product (GNP)
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