how to calculate national income through expenditure method?
national income = private final expenditure + government final expenditure + gross domestic capital formation + net exports.
First we cal. GDP at MP= private final consumption expenditure + govt. final consumption exp. + bussiness fixed investment +govt. fixed investment + investment on residental construction + inventory stock(closing stock - opening stock) + net export(x-m).
secondly, NDP at MP= GDP at MP - N.I.T
AT LAST, we cal. NNP at FC(NATIONAL INCOME)=NDP at MP + NFYA.
Expenditure method steps involved:
A. Identifying economic units andincurring final expenditure
Economic units are:
and, rest of the world
B. classification of final expenditure
final expenditure is classified as:
(a)final consumption expenditure: (i)private final consumption expenditure (ii)govt final consumption expenditure
(b)gross domestic capital formation:(i)gross domestic fixed capital formation (ii)changes in stock
(c)net exports=value of exports-value imports
C. GDP AT MP= FINAL CONSUMPTION EXPENDITURE+GROSS DOMESTIC CAPITAL FORMATION+NET EXPORTS
NATIONAL INCOME(NNP AT FC)=GDP AT FC-CONSUMPTION OF FIXED CAPITAL+NFIA-NET INDIRECT TAX
In the case of the divers..deep underneath the pressure is very high that the gases are easily soluble in the blood in high concentrations..i.e.by the henry's law that the solubility is propotional to the partial pressure at low temperature.
when the divers reach the surface..the pressure decreases.. leading to the release of the dissolved gases such as Nitrogen , which leads to the formation of bubbles in blood..BENDS(blockage of the blood capillaries due to the bubbles)
To avoid these.. divers use helium in the tanks along with the air..:)
hope this helps u..:)