Question

On the basis of the data given below for an imaginary economy, estimate the Gross National Product at Market price (GNP_MP):

S.NO	Items	Amount (₹ in crore)
(i)	Household Consumption Expenditure	2,000
(ii)	Government Final Consumption Expenditure	1,000
(iii)	Gross Fixed Capital Formation	1,100
(iv)	Net additions to Stock	200
(v)	Exports	600
(vi)	Net factor income from abroad	150
(vii)	Imports	400

Answer 1

GNP_MP = GDP_MP + Net Factor Income from abroad

= 4,500 + 150 = 4,650 crore

GNP_MP = Final Consumption Expenditure + Gross Domestic Capital Formation + Net Exports 

= 3,000 + 1,300 + 200= 4,500 crore

1. Final Consumption Expenditure = Household Consumption Expenditure + Government Final Consumption Expenditure
   = 2,000 + 1,000 = 3,000 crore
2. Gross Domestic Capital Formation = Gross Fixed Capital Formation + Net Addition to Stock 
   = 1,100 + 200 = 1,300 crore
3. Net export = Exports - Imports = 600 - 400 = 200 crore