Calculate NNP at FC from the following data by (i)income method and (ii) expenditure method.

i) Govt. final consumption expenditure 100

ii) subsidies 10

iii)Rent 200

iv) Waghes and salaries 600

v)indirect taxes 60

vi)Consumption of fixed capital 10

vii)Private final consumption expenditure 800

viii)gross domestic capital formation 120

ix) Social security contributions by employers 55

x)Net exports 70

xi)Net factor income paid to abroad 30

xii)Royalty 25

xiii)Interest 20

xiv)Change in stock 50

xv)Profit 130

INCOME METHOD:-

COE+OS+MI=NDPfc

(-) NFI to abroad

=NNPFC (NATIONAL INCOME)

(600+55) +(200+25+20+130) +0=1030-30=1000

EXPENDITURE METHOD

GFCE+PFCE+GDFC+NET EXPORT=GDPmp

GDPmp - DEP +NFIA -NIT=NNPfc

100

+800

+120

+70

=1090

-10

-30

-50

=1000=NNPfc

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