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National Income
National Income
from GDPMp?
ample .1 How can we obtain NNP
Solution: GDPMr - NIT = GDPpe
GNPpC deprcciation =
NNPp
data:
from the following
2 Calculate the national income
Example
(in crores)
Items 2000
market pricesS
in the economy at
Gross value of output produced 150
Net Factor Income from Abroad
180
Indirect taxes
50
Subsidies
12
Consumption of fixed capital
12
So,
= T2008 crores
950 85+50
=915
Example 4 Find the national income and the personal income from the following data:
Items
(in crores)
1500
GNP
Consumption of capital 50
Indirect business tax 150
90
Subsidy
Social security contribution 70
Corporate income tax 60
Now.
Personal income = National income-(Social security contribution+ Corporate income tax + Undistributed corporate profits)
+Transfer payments
Or, Personal income
=
1390 (70 + 60 + 100) + 80
Or. Personal income = 1390 -
230 + 80
= T1240 crores
Solution: National income (in expenditure method) = Private consumption expenditure + Net domestic capital formation +
Government expenditure + Net exports + Net factor earnings from abroad - Net indirect taxes
Or, National income =
[300 + 200+150+(80 - 120) -20 70]
= T520 crores