-->

National Income Accounting

Question
CBSEENEC12013290

From the following data, calculate GDP at FC 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)

Profits

100

(vi)

Gross residential construction investment

60

(vii)

Government purchase of goods and services

200

(viii)

Gross public investment

40

(ix)

Rent

50

(x)

Inventory investment

20

(xi)

Exports

40

(xii)

Interest

50

(xiii)

Imports

20

(xiv)

Net factor income from abroad

- 10

(xv)

Mixed income

100

(xvi)

Depreciation

20

(xvii)

Subsidies

10

(xviii)

Indirect taxes

20

 

Solution

(a) GDP at FC (Expendiure method)
= 700 + (60 + 60 + 40 + 20) + 200 + (40 - 20) + (10 - 20)
= 1090 crores
(b) GDP at FC (Income method)
= 700 + 100 + 50 + 50 + 100 + 20
= 1020 crores