Question

Calculate GDP at factor given
Given NNP at market price=3200
NFIA =200
Depreciation =1000
Indirect tax=500
Subsidies=300

Answer 1

GDP = NNP – NFIA+ Depreciation

NNP at Factor = NNP at Market Price + Subsidies – Indirect tax

NNP = 3200 + 300 – 500

        = 3000

Hence GDP = 3000 – 200 + 1000

GDP at factor = 3800.