EoNoMICs Tutoìal

5-08- 2023
Fonmulas:

Domeshe NNPmp' Nohio

3(GDPF) Acoonhiy Aaa
4. NDFc 8.(NPre
. GDlmp sGDP one at Manrel Pice
GDPFC Faclor osl

" MP - Facor Cost 4Thdiect Tax - Subsicies

welTncect taxes
ChDp- Deoreciahon
NDP+ Factoa mom e fom abroad -
" NNP =
Fachrincome toabrood

Neh acon meome hróm coroacl

Net facloTMome lo abrad
Namanical
-00o
GIN Pmp =G00
Depseca) fron absoac >
Faclon income L 700,
taxs
Net tndmect
NP= GNP- De
Ans! mp
800D-600 T400
NPrnp Facor ncoR
NUPn EacaheOTp NNPo
 Flo0
be added nÍt
NDPFC. TNetmdnecfaxes - NDPPcrect
NDPF 7100-A00

a Calcalate GDPmp
NNPrC = 2000
Depsetianon = 200
Facon n come from = (0
oboad
tnitect tares (80 Kotl2ac
föco ncome fo

Ans:
GPre
GnDPrc
CnDPrcr Ql40 + 160-0)

* National Tncome s always calculaked at Facor

# Dierent Met'ods of 6indmg GDP:

Fosmulas
NANPR Secjo + Gyf of Tethoy spétor
Bioduct mefnod:
 GivA: Gvoss Value odded
Seclo +
CVA o Biim any
NNPFC Gvn of Seconday
sectoy +
Secbo
GvA ot Teanay
Deyreciatrorn
Net n dinect taces
from abroad NNp
+ Net facosn Mco meCNFIA)
A Income mehod

NNPF Compensaton of empBoy ees

+ Rent &Royalhu
+ Tnto est
+ Paofit
+ Mixed încome

+ NPA e

* Expendiruve Melhod:
NNP Brivale fnal consaphon
+ Govt final consumpDn
expendînre p

sdoibshe copital ondhn

3 Gun by paimany 9e con =
VA by Secondan sector 2500
Tezhonu Sealoy (200

Compensahon ofemployees \500

Rent 2Royalty
Tntest 4s0
mixcd Tncome
Bot
Pul fnal cons exp = 3500
Cho Vt fmal con sm ep= Gs0
ChYo55 domeshe Capial brm =1300
Net
erponts
Nel meest far
De preciahon
NfIA
A GDP by Poduct

C1DPmp S300

ND Prc
utoo4 00

B Income method:

S800O] VNPe U20o

 t200 t900\000+200 100+
t400 Q99 mp
Gpp
2420
GDPF
20
t200
20 90 200 (00o (oo =Fc
NDP
2q00
Savgatb
54 Dhrdendt Boit: Ans:
cmplayees
lo0. sahon pen Com
ok
Intnesl
200 Secto
ofcospoxak Savmg
400
come m mì
200
Dividendl
500
1000ok Rent
NPIA
20 -
Depaeciahon
qoo tax mchYect Net
 GNP 2800 20

CNPmp a0t 400

1/9|2023 3680

>Nominat GDP: Cway of nonm alizg hu unts

bn itf e dlrgoods)
ag. No rof unis + Preofeach unit
g Nominal Gop isnot useful m long tAM, hence we
USed Real Gop
’ Real Gpp.
Ths heck fon Mcrease MQuanhno
paice
Rea GDp = N, CP base) t N, CPzbasey)
GiD PN S0-Pe
CDPdaflabr)
4 Consumen Briee Tnder:CCpi)
G Tangcs only a speate baskehofgoocs
notall.
CPr 6o P

Ine ase M CPT Tn ftahion.

y Gvowth Rak of GOP D De

Gyousth Rate of CPr Ct -Ce

 D

gro wth Tatc

rate of Gh DP
.

p.
P S
40
2000ko 20 15 Ael 2
20
2022

) Nomin al GD P cpASto
2000
(20x1s) + luoxs)
230o t 20 )
2022 ) (uox2o) t l00x2)
800 +200 TI000

Real 1DP:
(u05) + 1ooxs)

S) GDP Defabr lo00

L100
8-4-2023
Slutsky Equahon:
Priee eifect
încomaefect.
Subshhuno» fct
 Subsh tuh fect . incom efct
G rate ot exchange G punchasmg
power.
1 Suppose that the cons umen is
Ia ortiginally
Consurmmg 20 ands bazs na week &
Candy bass
that candy bas cost so cenks aplece
IE he pate of candy bos goes up bg
10 cents, how much cwould mo me haveb
chang tomake old onsump hon bunde
aPfondab?
A: Ci 20
P, 50cen)s

ATn come - XAP e 20x0

200ens
Q. T Bike of qood x (goe down, ohat wl)
happen o adjustmontn income?

3
demand fn
al lo +mop1)
Oigmal meome ’ $240 pn week
prlee of onanges > Go pol kg
falls toto a
priee of- ononge talls 4kg
Cale æ) Subshiruhon efec | )piaetkct,
ií) Income efecl
 Ans: ms240

pi $4
sp, -
P -p
>G-4 2

- 14 (u-6 )
m'- m Am
Quot-28) -$212
" Subshehon etfect:

loxP

lexa

(10+59) - 4)

Income fecl

lox4
paice efect:

Thdian
ian ecomomg'rba
Good Pzo19 Pz020
Nokboots A50
clo hes 7l00 120130
?0.

260
220
CPla018 220
x\00

CPI 2019 X100

220
CPT 20 2D 240 XOO = 181-2
220

TnttatHOn AcPr blw ooyeas

e CPlzo14 -Cr2018 X100
CPT2o18

I8-13.
modeak, ohnwse Hgh
Infahon Yat blw 2020 &20(9
431-82- \8 ldx100
IL8-18 e |.54.
WPT: wholesalen Bice Jnclex.
b Tndian oco nomy bllouos CPT inseal a/
wPT because consume's basket s
taken mo accoun thatwould predich
Toflatron, dafabon 2 othan as pecs.

n îndia, base ye s taren. as 20l2

Usually,basegr ae taken mmaltiples of
2000, 200 S. elc Bah since Thdia
Saffoed fnanetal baneing cnsis in 2
2009 &2008 Economis* houghitaking
2010 as base yean would be Boo ecasly,
hen ce 2012,