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National Income Accounting

Question
CBSEENEC12013289

 From the following data, calculate NNP at MP by (a) Expenditure method, and (b) Income method. 

   

(र in crores)

(i)

Personal consumption expenditure

700

(ii)

Wages and salaries

700

(iii)

Employee's contribution to S.S. Schemes

100

(iv)

Gross business fixed investment

60

(v)

Gross residential construction investment

60

(vi)

Gross public investment

40

(vii)

Inventory investment

20

(viii)

Profits

100

(ix)

Government purchase of goods and services

200

(x)

Rent

50

(xi)

Exports

40

(xii)

Imports

20

(xiii)

Interest

40

(xiv)

Mixed income

100

(xv)

Net factor income from abroad

- 10

(xvi)

Depreciation

20

(xvii)

Subsidies

10

(xviii)

Indirect taxes

20

 

Solution

(a) NNPMP (Expenditure method)
= 700 + (60 + 60 + 40 + 20) + 200 + 40 - 20 - 10 - 20
= 1070 crores
(b) NNPMP (Income method)
= (700 + 100) + 100 + 50 + 40 + 100 - 10 - 10 + 20
= 1090 crores