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National Income Accounting

Question
CBSEENEC12013248

Calculate Net National Disposable Income (NNDI) from the following data:

   

(र in crores)

(i)

Current transfers from government

35

(ii)

Private final consumption expenditure

500

(iii)

Net current transfers from ROW

(-)10

(iv)

Govt. final consumption expenditure

150

(v)

Net factor income from abroad

(-)20

(vi)

Net domestic capital formation

100

(vii)

Net indirect taxes

120

(viii)

Net exports

50

Solution

GDP at MP (Exp. method) = 500 + 150 + 100 + 50 + dep (0) = 800
GNP at MP = 800 + (- 20) = 780
NNDI = 780 + (- 10) = 770 crores.