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  • National Income FORMULAE

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    J.Abishek Sundar
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    The document outlines key concepts and relationships in national income accounting, including: - Gross value, net value, depreciation, market price, and factor cost are defined in relations to calculating gross domestic product. - Abbreviations for these concepts are identified, such as GDP, GVA, NVA, NDP. - Equations show how gross values relate to net values through the addition or subtraction of depreciation and indirect taxes. - Components of national income and gross national product are defined both at factor cost and market prices.

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    The document outlines key concepts and relationships in national income accounting, including: - Gross value, net value, depreciation, market price, and factor cost are defined in relations to calculating gross domestic product. - Abbreviations for these concepts are identified, such as GDP, GVA, NVA, NDP. - Equations show how gross values relate to net values through the addition or subtraction of depreciation and indirect taxes. - Components of national income and gross national product are defined both at factor cost and market prices.

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    © All Rights Reserved
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    2 views2 pages

    National Income FORMULAE

    Uploaded by

    J.Abishek Sundar
    The document outlines key concepts and relationships in national income accounting, including: - Gross value, net value, depreciation, market price, and factor cost are defined in relations to calculating gross domestic product. - Abbreviations for these concepts are identified, such as GDP, GVA, NVA, NDP. - Equations show how gross values relate to net values through the addition or subtraction of depreciation and indirect taxes. - Components of national income and gross national product are defined both at factor cost and market prices.

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    © All Rights Reserved
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    NATIONAL INCOME ACCOUNTING

    GROSS VALUE – DEPRECIATION = NET VALUE

    NET VALUE + DEPRECIATION = GROSS VALUE

    MARKET PRICE – NET INDIRECT TAXES = FACTOR COST

    FACTOR COST + NET INDIRECT TAXES = MARKET PRICE

    GROSS VALUE ADDED MP – DEPRECIATION = NET VALUE ADDED MP

    NET VALUE ADDED MP + DEPRECIATION = GROSS VALUE ADDED MP

    GROSS DOMESTIC PRODUCT MP - DEPRECIATION = NET DOMESTIC PRODUCT MP

    NET DOMESTIC PRODUCT MP + DEPRECIATION = GROSS DOMESTIC PRODUCT MP

    GVA MP – NET INDIRECT TAXES = GVA FC

    NVA MP - NET INDIRECT TAXES = NVA FC

    GDP MP – NIT = NDP FC

    NDP FC + NIT = NDP MP

    GDP MP - DEPRECIATION = NDP MP

    NDP MP + DEPRECIATION = GDP MP

    GDP FC - DEPRECIATION = NDP FC

    NDP FC + DEPRECIATION = GDP FC

    NET NATIONAL PRODUCT FC (National income) + NIT = NET NATIONAL PRODUCT MP

    GROSS NATIONAL PRODUCT MP - NIT = GROSS NATIONAL PRODUCT FC

    NET NATIONAL PRODUCT FC + DEPRECIATION = GROSS NATIONAL PRODUCT FC

    GROSS NATIONAL PRODUCT MP - DEPRECIATION = NET NATIONAL PRODUCT MP

    NATIONAL INCOME = DOMESTIC INCOME + NET FACTOR INCOME FROM ABROAD

    OR

    NNP FC = NDP FC + NFIA

    GNP FC – NFIA = NNP FC

    DOMESTIC INCOME = NATIONAL INCOME – NFIA

    GROSS NATIONAL PRODUCT FC – DEPRECIATION = NET NATIONAL PRODUCT FC


    GROSS NATIONAL PRODUCT FC + NIT = GROSS NATIONAL PRODUCT MP

    VALUE OF OUTPUT = SALES + CHANGE IN STOCKS

    VALUE OF OUTPUT = QUANTITY SOLD x PRICE(SALES) + CHANGE IN STOCKS.

    VALUE OF OUTPUT – INTERMEDIATE CONSUMPTION = VALUE ADDED (GVA MP)

    GVA MP + INTERMEDIATE CONSUMPTION = VALUE OF OUTPUT

    GVA MP – DEPRECIATION = NVA MP

    NVA MP – NIT = NVA FC

    NVA FC + NIT = NVA MP

    NVA MP + DEPRECIATION = GVA MP

    GVA MP + I C = VALUE OF OUTPUT

    VALUE OF OUTPUT – SALES = CHANGE IN STOCKS

    VALUE OF OUTPUT – CHANGE IN STOCKS = SALES.

    CHANGE IN STOCKS = CLOSING STOCK – OPENING SOCK

    NET INDIRECT TAXES = INDIRECT TAXES – SUBSIDIES.

    GVA FC + _______ = GVA MP

    NVA MP + ______ = GVA MP

    GDP MP - _______ NDP MP

    NDP MP - ______ = NDP FC

    NDPFC + ________ = NNP FC

    GNP MP - _______ GNP FC

    GVA MP + ________ = VALUE OF OUTPUT

    VALUE OF OUTPUT – SALES =

    SALES + CHANGE IN STOCKS = ________________

    NNP FC + _________= GNP FC

    GNP FC - _______ = GDP FC

    GDP FC - _______ = NDP FC

    NNP FC -_________ = NDP FC

    VALUE OF OUTPUT – CHANGE IN STOCKS = __________

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