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Calculate (a) Gross Domestic Product at ...

Calculate (a) Gross Domestic Product at market price through the income method and (b) national income by the expenditure method:
(i) Mixed income of the self-employed 280
(ii) Compensation of employees 240
(iii) Net factor income from the rest of the world (-)5
(iv) Imports 60
(v) Exports 50
(vi) Government's final consumption expenditure 75
(vii) Goods and services tax 90
(viii) Change in stocks 35
(ix) Private final consumption expenditure 510
(x) Consumption of fixec capital 40
(xi) Gross fixed capital formation 130
(xii) Subsidies 100
(xiii) Rent, interest and profits 100
(xiv) Interest on national debt 10

Text Solution

Verified by Experts

`GDP_(mp)` (income method)
`=ii+xiii+i+x+vii-xii`
`=240+100+280+40+90-10`
=rs 740 crore
N.I. (Expenditure method)
`=ix+vi+xi+viii+v-iv+iii-x-vii+xii`
`=510+75+130+35+50-60+(-5)-40-90+10`
=rs 615 crore.
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