Please answer me question no 34 34 Calculate National Income by income method and expenditure method - Economics - National Income Accounting

Question

Please answer me question no 34

34 Calculate National Income by income method and expenditure
method

Particulars
â‚¹ in crores

(i) Government final consumptions expenditure
(ii) Interest, rent and profits
(iii) Gross Capital formation
(iv) Not exports
(v) Change in stock
(vi) Net Factor income from abroad
(vii) Subsidies
(viii) Private Final Consumption expenditure
(ix) Indirect tax
(x) Consumption of fixed Capital
(xi) Mixed income of the self employed
(xii) Compensation of employees
100
920
620
(−) 10
100
(−) 10
20
800
120
60
60
370

Suman Lata · Accepted Answer

DEAR STUDENT

INCOME METHOD
NDPfc = Compensation of employees +
Rent + Interest + Profit + Mixed income
= 370 + 920 + 60
= 1350 Rs in crores

National income (NNPfc) = NDfc + NFIA (Net Factor Income From
Abroad)
= 1350 + (-10)
= 1340 Rs in crores

EXPENDITURE
METHOD

GDPmp = C (household consumption) + G
(government expenditure) + I (investment expense) + NX (net
exports)+Gross domestic fixed capital formation + change in
stock

= 800+100+(-10)+ 620 Rs in crores
=(1510) Rs in
crores
National income
(NNPfc)
= GDPmp + NFIA (Net Factor
Income From Abroad) – NIT (Net Indirect Taxes)
-Depreciation
= 1510 + (-10) - 60 - (120 -20)
= 1510 - 170
=1340 Rs in
crores

Particulars	₹ in crores
(i) Government final consumptions expenditure (ii) Interest, rent and profits (iii) Gross Capital formation (iv) Not exports (v) Change in stock (vi) Net Factor income from abroad (vii) Subsidies (viii) Private Final Consumption expenditure (ix) Indirect tax (x) Consumption of fixed Capital (xi) Mixed income of the self employed (xii) Compensation of employees	100 920 620 (−) 10 100 (−) 10 20 800 120 60 60 370