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Estimate the Gross National Product at market price and GNP at factor cost through the expenditure method.ItemAmount (in Crores)Inventory investment15Net factor income from abroad10Personal consumption expenditure475Gross residential construction investment48Exports25Government purchase of goods and services175Gross business fixed investment38Imports12Net indirect tax8 |
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Answer» GNPMP = private consumption expenditure + govt, final consumption expenditure( gross fixed capital formation + change in stock or inventory investment) + net export + net factor income from abroad = 475 + 175 + 101 (i.e., 48 + 15+ 38) + 15 + 13 = ₹779 crores. GNPC = GNPUD – net indirect taxes = 779 – 8 = ₹771 crores |
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