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    Numericals On National Income Accounting 2019-20

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    NIKITA SONI
    This document contains 5 numerical problems related to national income accounting. It provides key economic indicators such as GNP, GDP, inflation rates, personal and corporate income, taxes, and government spending to calculate concepts like real GDP growth, rate of inflation, corporate profits, disposable income, value of national income, value added and personal savings. The problems demonstrate how to use national accounts data to analyze an economy.

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    Numericals On National Income Accounting 2019-20

    Uploaded by

    NIKITA SONI
    93 views2 pages
    This document contains 5 numerical problems related to national income accounting. It provides key economic indicators such as GNP, GDP, inflation rates, personal and corporate income, taxes, and government spending to calculate concepts like real GDP growth, rate of inflation, corporate profits, disposable income, value of national income, value added and personal savings. The problems demonstrate how to use national accounts data to analyze an economy.

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    Numericals on National Income Accounting 2019-20

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    This document contains 5 numerical problems related to national income accounting. It provides key economic indicators such as GNP, GDP, inflation rates, personal and corporate income, taxes, and government spending to calculate concepts like real GDP growth, rate of inflation, corporate profits, disposable income, value of national income, value added and personal savings. The problems demonstrate how to use national accounts data to analyze an economy.

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    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    93 views2 pages

    Numericals On National Income Accounting 2019-20

    Uploaded by

    NIKITA SONI
    This document contains 5 numerical problems related to national income accounting. It provides key economic indicators such as GNP, GDP, inflation rates, personal and corporate income, taxes, and government spending to calculate concepts like real GDP growth, rate of inflation, corporate profits, disposable income, value of national income, value added and personal savings. The problems demonstrate how to use national accounts data to analyze an economy.

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    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 2

    Numericals on National Income Accounting

    1. Answer based on the following information:

    Year Nominal GNP GNP deflator


    2001-02 5000 250
    2002-03 6600 300
    a) What is the growth rate of real GNP from year 2001-02 to 2002-03?
    b) What is the rate of inflation in the economy for the year 2002-03?

    Real GDP01-02 = 5000*100/250= 2000, Real GDP02-03= 6600*100/3000= 2200, Real GDP growth rate = 2200-
    2000/2000*100= 10%

    Rate of inflation = 300-250/250*100= 20%

    2. 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
    NFIA NIL
    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.

    3. The following information is extracted from the National Income Accounts of an economy for the year
    2013-14:

    Particulars Million Units of


    Currency (MUC)
    Personal Consumption Expenditure 1000
    Indirect business taxes 91
    Undistributed corporate profits 50
    Corporate income tax 101
    Personal savings 34
    Depreciation 87
    Transfer payments by government 114
    Personal tax payments 102
    Calculate: GNP@fc(1000+50+101+34-114+102+87=1260), NNP@mp(1260-87+91=1264),
    NNP@fc(1264-91=1173), Personal Income (1173-50-101+114=1136) and Personal Disposable
    Income (1136-102=1034).

    4. 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.

    5. Particulars Rs. Crores


    GNPMP 2400
    Gross Investment 400
    Net Investment 150
    Consumption 1500
    Govt. purchases 480
    National Income 1925
    Wages & salaries 1460
    Proprietors income +rent 160
    Dividends 50
    Govt. Budget surplus 15
    Interest 60
    Transfer Payments 260
    Personal tax and
    Non-tax payments 300
    Calculate:

    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

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