Answer to Question #197758 in Macroeconomics for abinash

Question

Calculate (a) Gross National Product at MP from the following data.

ITEMS

 (Rs. in Crores)

i. Net factor income to abroad.

10

ii. Private income

1700

iii.Operating surplus.

300

iv. Corporation tax

150

v. Undistributed profit.

30

vi. M I

500

vii. C F C

100

viii. Personal Taxes

200

ix. Compensation of employee.

1200

x. N I T

250

Answer 1

$$Solution$$

Using income method :

$NDP_fc = Compensation \ of\ Employees + Operating \ Surplus + MI = 1200 + 300 + 500 = 2000 \\ GNP_mp = NDP_fc + dep + NIT+\ Net\ Factor\ Income \ to\ Abroad = 2000 + 100 + 250 + (-10)\\ GNP_mp = Rs\ 2340$