Calculating GDP, GNP, Net National Product and National Income

Year 1 Consumption Investment Property Income earned overseas Property income paid overseas Subsidies Indirect Taxes Exports Imports Depreciation Government Spending Calculate for both years : 1. GDP at market prices 600 134 75 95 55 85 80 105 70 280 Year 5 960 340 120 95 110 150 150 125 90 270

2. GNP at market prices

3. GNP at factor cost

4. Net National Product

5. National Income

Calculating GDP, GNP, Net National Product and National Income - Answers
Calculate for both years : 1. GDP at market prices Year 1 Year 5 Y= C + I + G +X- M 989 = 600 + 134 + 280 + 80 -105 Y = C + I + G +X- M 1595 = 960 + 340 + 270 +150 - 125

2. GNP at market prices Year 1 GNP = GDP + Property income Property income earned overseas - paid overseas 969 = 989 + 75 95 Year 2 GNP = GDP + Property income Property income earned overseas - paid overseas 1620 = 1595 + 120 95

3. GNP at factor cost GNP at factor cost = GNP at market prices - Indirect Taxes + Subsidies Year 1 Year 2 939 1660 = = 969 1620 85 70 + + 55 110

4. Net National Product NNP = GNP at factor cost - Depreciation Year 1 Year 2 869 = 1570 = 939 1660 70 90

5. National Income see NNP