Answer to Question #213296 in Macroeconomics for Ashima Gupta

Question

Calculate NDP at MP, NDP at FC and NNP at

FC

GrossDomestic Product atRs Crores

Market Prices20000

Indirect Taxes2000

Subsidies500

Exports2000

Imports2500

Capital Consumption1000

Ans:

NDP at MP= 19800 Crores

NDP at FC= 17500 Crores

NNP at FC= 17000 Crores

Answer 1

NDP at MP= Market Prices-Capital Consumption

NDP at MP= 20000 -1000=19000

NDP at MP= 19000 Crores

NDP at FC= NDP at MP - Indirect tax - Subsidies

NDP at FC= 19000-2000+500=17500

NDP at FC= 17500 Crores

NNP at FC= Market Prices - Indirect Taxes+ Subsidies + (Exports - Imports)-Capital Consumption

NNP at FC= 2000-2000+500+(2000-2500)-1000

NNP at FC= 17000 Crores