Give the answer please
Solution:
Using expenditure method:
GDPmp = Private final consumption expenditure + Government final consumption expenditure - net imports + Net domestic capital formation + consumption of fixed capital + change in stock
= 1200 + 200 - 40 + 220 + 70 - 20
= 1630
National income = GDPmp - consumption of fixed capital - Net indirect taxes + NFIA
= 1630 - 70 - (240-50) + 30 = 1400
(Since net factor income to abroad is given as -30, this means that factor income from abroad is 30)
So, national income is Rs 1400 crores.
Using expenditure method:
GDPmp = Private final consumption expenditure + Government final consumption expenditure - net imports + Net domestic capital formation + consumption of fixed capital + change in stock
= 1200 + 200 - 40 + 220 + 70 - 20
= 1630
National income = GDPmp - consumption of fixed capital - Net indirect taxes + NFIA
= 1630 - 70 - (240-50) + 30 = 1400
(Since net factor income to abroad is given as -30, this means that factor income from abroad is 30)
So, national income is Rs 1400 crores.
