Calculate National Income and Gross National Disposable Income from the following:
Calculate National Income and Gross National Disposable Income from the following:
| (Rs. in Arab) | |
| (i) Net current transfers to abroad | (-) 15 |
| (ii) Private final consumption expenditure | 600 |
| (iii) Subsidies | 20 |
| (iv) Government final consumption expenditure | 100 |
| (v) Indirect tax | 120 |
| (vi) Net imports | 20 |
| (vii) Consumption of fixed capital | 35 |
| (viii) Net change in stocks | (-) 10 |
| (ix) Net factor income to abrod | 5 |
| (x) Net domestic capital formation | 110 |
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(i) National Income (NNPFC)
NNPFC=Private final consumption expenditure + Government final consumption expenditure+ Net domestic capital formation - Net imports - Net Indirect tax - Net factor income to Abroad
=600+100+110-20-(120-20)-5
Rs. 685 Arab
(ii) Gross National Disposable Income
GNDI = NNPFC + Net Indirect tax + Consumption of fixed capital - Net current transfer to abroad
=Rs. 685+(120-20)+35-(-)15
=Rs. 835 Arab
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