Calculate national income .(1) Products method,(2) Expenditure method

Dear Students,

Calculation of National Income by the two methods are as follows :

1. Product Method 
 GVA_MP  = GVA  ( Primary sector + Secondary Sector + Tertiary Sector)
               = 2400 + 1600 + 5600
               = 9600
NVA _MP = GVA_MP - Depreciation
             =  9600 - 1200
             =  8400
NVA_FC = NVA_MP - Net Indirect Tax
            = 8400 - 960
            = 7440
NNP_FC = NVA_FC + NFIA
            =  7440 + 160
            = 7600

2. Expenditure Method
(It is assumes that Net Domestic capital formation is a Net Domestic Fixed Capital formation , if we do not assume that answer is not coming same as to the product method)

GDP_MP = Private Final Consumption Expenditure + Government Final Consumption Expenditure + (Net Domestic Fixed Capital             Formation + Change in stock + Depreciation) + Net Exports

       = 6000 + 1200 + ( 1760 + (-160) + 1200) + (-400)
      = 8400
NDP_MP = GDP_MP - Depriciation
            = 9600 - 1200
            = 8400
NNP_MP = NDP_MP ​​​​​​+ NFIA
            = 8400 + 160
            = 8560
NNP_FC = NNP_MP - Net indirect tax
            = 8560 - 960
            = 7600

Regards.