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Find Out (A) National Income and (B) Net National Disposable Income - Economics

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Find out (a) national income and (b) net national disposable income:

S. No.                            Items                                                    (Rs crores)

i.            Factor income from abroad                                                  15
ii.           Private final consumption expenditure                                  600
iii.          Consumption of fixed capital                                                50
iv.          Government final consumption expenditure                         200
v.           Net current transfers to abroad                                           (-) 5
vi.          Net domestic fixed capital formation                                    110
vii.         Net factor income to abroad                                                10
viii.        Net imports                                                                     (-) 20
ix.          Net indirect tax                                                                   70
x.          Change in stocks                                                              (-) 10

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Solution

a.
NDPMP = Private Final Consumption Expenditure + Government Final Consumption Expenditure + Net Domestic Fixed Capital Formation + Change in Stock − Net Imports

= 600 + 200 + 110 + (−10) − (−20)
= Rs 920 crore

NNPFC = NDPMP + NFIA − Net Indirect Taxes

= 920 + (−10) − 70
= Rs 840 crore

b.
Net National Disposable Income = NDPMP + NFIA − Net Current Transfers to Abroad

= 920 + (−10) − (−5)
= Rs 915 crore

Concept: National Disposable Income (Gross and Net)
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