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Given the Following Data, Find the Missing Value of 'Government Final Consumption Expenditure' and 'Mixed Income of Self Employed'. - Economics

Answer in Brief
Numerical

Given the following data, find the missing value of 'Government Final Consumption Expenditure' and 'Mixed Income of Self Employed'.

S.No. Particulars Amount
(In ₹ crores)
(i) National Income 71,000
(ii) Gross Domestic Capital  Formation 10,000
(iii) Government Final Consumption Expenditure ?
(iv) Mixed Income of Self Employed ?
(v) Net Factor Income from Abroad 1,000
(vi) Net Indirect Taxes 2,000
(vii) Profits 1,200
(viii) Wages & Salaries 15,000
(ix) Net Exports 5,000
(x) Private Final Consumption Expenditure 40,000
(xi) Consumption of Fixed Capital 3,000
(xii) Operating Surplus 30,000
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Solution

National Income (NNPFC) = 71,000

We know,
NNPFC = GDPMP - Consumption of Fixed Capital - NIT + NFIA
71,000 = GDPMP - 3,000 - 2,000 + 1,000
GDPMP = 75,000

Now, we know as per the expenditure method:
GDPMP = Private Final Consumption Expenditure + Government Final Consumption Expenditure + Gross Domestic Capital Formation + Net Exports
75,000 = 40,000 + G + 10,000 + 5,000
G = 20,000
So, Government Expenditure is equal to ₹ 20,000

Now, NNPFC = NDPFC + NFIA
71,000 = NDPFC + 1,000
NDPFC = 70,000

Also,

NDPFC = Compensation of Employees + Operating Surplus + Mixed Income
70,000 = 15,000 + 30,000 + Mixed Income 
Mixed Income = 25,000
So, Mixed-Income is equal to ₹ 25,000.

Concept: Aggregate Demand and Its Components - Consumption
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