Answer to Question #198482 in Macroeconomics for Atul Kumar

Question

From the data given below, Calculate the Net Domestic Product at Factor Cost using (a) Income Method & (b) Expenditure Method - Particulars Rs. in Billion (i) Sales 19200 (ii) Increase in stock 4160 (iii) Intermediate Consumption 4740 (iv) Depreciation 900 (v) Wages and salaries 10800 (vi) Internet 500 (vii) Rent 1500 (viii) Profit 4300 (ix) Net indirect Taxes 620

Answer 1

Net Domestic Product at Factor cost

Using the Income Method

NDP= Compensation of employees ( wages and salaries)+ interest + rent + profit)

$NDP=10800+500+1500+4300$

$NDP= Rs.17100 Billion$

By Expenditure Method

Increase in Stock +Intermediate consumption +net indirect taxes

$4160+4740 +620=9520$