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    Macro-NIA Numerical

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    yash
    This document outlines eight variants of national product aggregates: GDP and GNP at market prices and factor cost, and NDP and NNP at market prices and factor cost. It then provides definitions for key differences between the variants: gross vs net, market prices vs factor cost, and national vs domestic. Specifically, it states that gross equals net plus depreciation, market prices equals factor cost plus indirect taxes minus subsidies, and national equals domestic plus net factor income from abroad. Two examples are then shown calculating GDP, national income, and personal disposable income based on provided economic data.

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    Macro-NIA Numerical

    Uploaded by

    yash
    17 views6 pages
    This document outlines eight variants of national product aggregates: GDP and GNP at market prices and factor cost, and NDP and NNP at market prices and factor cost. It then provides definitions for key differences between the variants: gross vs net, market prices vs factor cost, and national vs domestic. Specifically, it states that gross equals net plus depreciation, market prices equals factor cost plus indirect taxes minus subsidies, and national equals domestic plus net factor income from abroad. Two examples are then shown calculating GDP, national income, and personal disposable income based on provided economic data.

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    Macro-NIA Numerical_480bb1303f608b83e6828544f2949ad2 (1)

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    This document outlines eight variants of national product aggregates: GDP and GNP at market prices and factor cost, and NDP and NNP at market prices and factor cost. It then provides definitions for key differences between the variants: gross vs net, market prices vs factor cost, and national vs domestic. Specifically, it states that gross equals net plus depreciation, market prices equals factor cost plus indirect taxes minus subsidies, and national equals domestic plus net factor income from abroad. Two examples are then shown calculating GDP, national income, and personal disposable income based on provided economic data.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    17 views6 pages

    Macro-NIA Numerical

    Uploaded by

    yash
    This document outlines eight variants of national product aggregates: GDP and GNP at market prices and factor cost, and NDP and NNP at market prices and factor cost. It then provides definitions for key differences between the variants: gross vs net, market prices vs factor cost, and national vs domestic. Specifically, it states that gross equals net plus depreciation, market prices equals factor cost plus indirect taxes minus subsidies, and national equals domestic plus net factor income from abroad. Two examples are then shown calculating GDP, national income, and personal disposable income based on provided economic data.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 6

    Eight variants of National Product Aggregates

    Gross Domestic Product (GDP) at Market Prices


    (MP)
    at Factor cost (FC)

    Gross National Product (GNP) at Market Prices


    at Factor cost

    Net Domestic Product (NDP) at Market Prices


    at Factor cost

    Net National Product (NNP) at Market Prices


    at Factor cost
    • We can sum up the difference between Gross &
    Net, Market Prices & factor cost and National &
    Domestic concepts in the following way:
    Gross = Net + Depreciation
    Market Prices = Factor Cost + Indirect taxes –
    subsidies
    National = Domestic + Net Factor Income from
    Abroad.
    • GDP at m.p. + NFIA
    EQUALS
    GNP at m.p. – Net Indirect Taxes - Depreciation
    EQUALS
    NNP at f.c. (popularly known as National Income)
    A. From the following figure compute:
    a) GDP at Factor Cost
    b) National Income
    c) Personal Disposable Income
    Rs. (Crore)
    GNP at Market Prices 5000
    Personal Income Tax 1000
    Corporate Taxes 800
    Subsidies 400
    Factor Income Paid Abroad 800
    Factor Income received from Abroad 900
    Undistributed Profit 200
    Indirect Taxes 450
    Depreciation 350
    a) GDP at f. c. = GNP at m. p.–IT +subsidies-
    NFIA
    = 5000-450+400 – (900-800)
    = 4850 cr.
    b) NI = NNP at factor cost
    = GNP at f.c. – Depreciation
    = (GNP at at m.p. – IT + subsidies)-Dep.
    = 4950 –350 = 4600 cr.

    c) Personal Disposable Income = Personal


    Income – Personal Taxes
    Personal Income = NI – Undistributed Profit –
    Corporate Taxes = 4600-200-800 =3600 cr.
    PDI = 3600 – 1000 = 2600 cr.
    Q. The following data pertains to an economy
    Rs. (cr.)
    GDP at m.p. 6000
    Corporate Income Tax 1200
    Personal Income Tax 900
    Subsidies 475
    Factor Income Recd. from abroad 1500
    Factor Income paid abroad 1200
    Undistributed profits 225
    Indirect Taxes 900
    Depreciation 600
    Required to compute:
    a) Personal Disposable Income b) National
    Income c) GNP at m.p.
    a) GNP at m.p. = GDP at m.p. + NFIA
    = 6000 + 1500 – 1200 = 6300 cr.

    b) NI = NNP at factor cost = GNP at m.p. –


    Indirect Taxes + subsidies- Depreciation
    = 6300 –900 + 475 –600 = 5275 cr.

    c) PDI = NI – Retained earning (UP) –


    corporate taxes – Personal Taxes
    = 5275 – 225 –1200 –900 = 2950 cr.

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