Question

Calculate disposable income when: (all figures in Rs.)

GNP= 240 billion

Depreciation=50 billion

Indirect taxes=25 billion

Subsidies= 10 billion

Corporate taxes=25 billion

Transfer payments=30 billion

Personal taxes=5 billion 

 

Answer 1

Disposable income is:

$DI = 240 - 50 - 25 + 10 - 25 + 30 - 5 = 175 billion.$