Particulars Private Final Consumption Expenditure Government Final Consumption Expenditure Gross Capital Formation a. Households b.

Private corporate sector c. Public Sector d. Valuables Exports Imports Indirect Taxes less subsidies Net Incomes from aboard Depreciation

2009-10 ( ` in corer) `18,656 ` 3,425 ` 3,560 ` 3,100 ` 2,204 ` 410 ` 5690 ` 6259 `2,706 `-223 `3,324

Calculate the following: a) GDP at market price b) GNP at market price c) GNP at Factor Cost d) Net National Product

Answer: GDP at Market Price= C+I+G+(X-M) = 18,656+ (3560+3100)+(3425+2204+410)+(5690-6259) = ` 30786 GNP at Market Price = GDPM+NFA = 30786+(-223) = ` 30563 GNP at Factor Cost= GNPM Ti + S = 30563-2706 = ` 27857 NNP/ National Income = GNPF Depreciation = 27857-3324 = ` 24533

Example: 2

Year 1 Consumption Investment Property Income earned overseas Property income paid overseas Subsidies Indirect Taxes Exports Imports Depreciation Government Spending 600 134 75 95 55 85 80 105 70 280

Year 5 960 340 120 95 110 150 150 125 90 270

Calculate for both years: 1. GDP at market prices 2. GNP at market prices 3. GNP at factor cost 4. Net National Product 5. National Income

Calculate for both years: 1. GDP at market prices Year 1 Y= C + I + G + (X - M) 989 = 600 + 134 + 280 + 80 -105 Y = C + I + G +X- M 1595 = 960 + 340 + 270 +150 - 125

Year 2

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 1 939 = 969 85 + 55 Year 2 1660 = 1620 70 + 110

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

Year 1 Year 2

5. National Income see NNP