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Real GDP01-02 = 5000*100/250= 2000, Real GDP02-03= 6600*100/300= 2200, Real GDP growth rate = 2200-
2000/2000*100= 10%
2. Calculate CPI by Laspeyre’s formula for the year 1980-81 assuming 1970-71 as base year:
295 = 169.55
3. For the year 2000-01, the national accounts statistics at current prices were as follows:
National Income 2000
Wages & Salaries 1500
Proprietor’s Income & Rental Income 200
Net Interest 100
Dividends 50
Transfer Payments 300
Personal Tax Payments 200
a) What is the amount of Profits earned by Corporates?
b) What is the Total Disposable Income of the Households?
Corporate profits =
National income = (Wages and salaries + Rental income + Proprietor’s income + Net interest)
= 2,000 – (1,500 + 200 + 100) = 2,000 – 1,800 = 200 MUC
Personal income = National income – (Corporate profits-Dividends) + Transfer payments = 2,000 – 200 +
300 + 50 = 2,150 MUC
Personal disposable income = Personal income – Personal taxes
= 2,150 – 200 = 1,950 MUC.
4. The following information is extracted from the National Income Accounts of an economy for the year
2013-14:
5. The following are the inter-industry transactions in an economy (the figures represent the money value
of output).
Industries A B C Total
Output
A 25 40 15 100
B 10 30 25 120
C 15 20 30 80
Total 100 120 80
a. The value of national Income in this economy is: Total output - inter-industry transactions
100 – (25+40+15) + 120 – (10+30+25) + 80 – (15+20+30) = 90
b. The value added in industry B is: Total output of B = 120 less output from A, C and captive
consumption = 40+30+20 = 90 hence value added by B = 120 – 90 = 30.
NNP at MP : 2150
Net Exports : 20
Net direct taxes: 225
Corporate Profits: 245
Taxes – Transfers: 495
Personal Income: 1990
Personal Disposable Income: 1690
Personal Savings: 190