Question
Calculate GNP at FC from the following data by (a) Income method, and (b) Expenditure method:
|
(र in crores) |
||
|
(i) |
Private final consumption expenditure |
1000 |
|
(ii) |
Net domestic capital formation |
200 |
|
(iii) |
Profits |
400 |
|
(iv) |
Compensation of employees |
800 |
|
(v) |
Rent |
250 |
|
(vi) |
Government final consumption expenditure |
500 |
|
(vii) |
Consumption of fixed capital |
60 |
|
(viii) |
Interest |
150 |
|
(ix) |
Net current transfers from rest of world |
-80 |
|
(x) |
Net factor income from abroad |
-10 |
|
(xi) |
Net exports |
-20 |
|
(xii) |
Net indirect taxes |
80 |
Solution
(a) GNP at FC (Income method)
= (iii) + (iv) + (v) + (viii) + (vii) + (x)
= 400 + 800 + 250 + 150 + 60 + (-10)
= 1650 crores
(b) GNP at FC (Expenditure method)
= (i) + (ii) + (vi) + (vii) + (x) + (xi) - (xii)
= 1000 + 200 + 500 + 60 + (-10) + (-20) - 80
= 1650 crores
