Calculate'National Income' and 'Net National Disposable Income' from the following :

(Rs. in Arab)
(i) Net change in stocks 50
(ii) Government final consumption expenditure 100
(iii) Net current transfers to abroad 30
(iv) Gross domestic fixed capital formation 200
(v) Private final consumption expenditure 500
(vi) Net imports 40
(vii) Depreciation 70
(viii) Net factor income to abroad (-) 10
(ix) Net indirect tax 120
(x) Net capital transfers to abroad 25
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1 Answers

(i) National Income (NNPFC)

=Private final consumption expenditure + Government final consumption expenditure + Gross domestic fixed capital formation + Net change in stock - Net imports - Depreciation - Net indirect tax - Net factor income to abroad

=500+100+200+50-40-70-120-(-10)

=860-230

=Rs.630 Arab

(ii) Net National Disposable Income (NNDI)

=NNPFC + Net Indirect Tax - Net current transfer to Abroad

=630+120-30

= Rs. 720 Arab

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