Q4.From the given data, calculate i) GDP at
market price ii) GDP at factor cost and GNP
Household Consumption ExpenditureRs 550 billion
Government ConsumptionExpenditureRs 250 billion
Gross fixedcapital formationRs 100 billion
DepreciationRs 150 billion
Indirect TaxesRs 160 billion
SubsidiesRs 40 billion
ExportsRs 200 billion
ImportsRs 250 billion
Net incomefrom abroadRs 159 billion
Ans
GDP at market price= 850 billion
GDP at factor cost= 730 billion
GNP at factor cost=880 billion
GNP at market price=1000 billion
Solution:
i.). GDP at market price = Household consumption expenditure + Government consumption expenditure + Gross fixed capital formation + Net exports
GDP at market price = 550 + 250 + 100 + (200 – 250) = 850 billion
ii.). GDP at factor cost = GDP at market price – Depreciation + Net income from abroad – Net indirect taxes
GDP at factor cost = 850 – 150 + 150 – (160 – 40) = 730 billion
iii.). GNP at market price = GDP at market price + Net income from abroad
GNP at market price = 850 + 150 = 1000 billion
iv.). GNP at factor price = GNP at market price – Net indirect taxes
GNP at factor price = 1000 – (160 – 40) = 1000 – 120 = 880 billion
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