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