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

(Rs. in Arab)
(i) Net imports 60
(ii) Net current transfers to abroad (-) 10
(iii) Net domestic fixed capital formation 300
(iv) Government final consumption expenditure 200
(v) Private final consumption expenditure 700
(vi) Consumption of fixed capital 70
(vii) Net change in stocks 30
(viii) Net factor income to abroad 20
(ix) Net indirect tax 100
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1 Answers

NI=(v) + (iv) + (iii + vii) - (i) - (ix) - (viii)

= Private final consumption expenditure + Govt. final consumption expenditure + (net domestic fixed capital formation + Net change in stock) - Net imports - Net indirect tax - Net factor income to abroad.

=700+200+(300+30)-60-100-20

=900+330-180

=1,230-180

=Rs.1,050 Arab

GNDI=NI + (vi) + (ix) - (ii)

=1,050+70+100-(-10)

=Rs. 1,240 Arab.

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