Question
From the following data, calculate national income by (a) income method, and (b) expenditure method.
|
(र in crores) |
||
|
(i) |
Interest |
150 |
|
(ii) |
Rent |
250 |
|
(iii) |
Government final consumption expenditure |
600 |
|
(iv) |
Private final consumption expenditure |
1200 |
|
(v) |
Profits |
640 |
|
(vi) |
Compensation of employees |
1000 |
|
(vii) |
Net factor income to abroad |
30 |
|
(viii) |
Net indirect taxes |
60 |
|
(ix) |
Net exports |
-40 |
|
(x) |
Consumption of fixed capital |
50 |
|
(xi) |
Net domestic capital formation |
340 |
Solution
(a) National income (Income method)
= 150 + 250 + 640 + 1000 - 30 = 2010 crores
(b) GDP at MP (Expenditure method)
= 600 + 1200 + (-40) + 340 + 50 = 2150 crores
National Income (NNP at FC)
= GDP at MP -(x) + (vii) - (viii)
= 2150 - 50 + (-30) - 60 = 2010 crores.
