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From the following data, calculate National Income by Income method and Expenditure method:ItemsRs. (in crores)(i) Compensation of employees700(ii) Government final consumption expenditure750(iii) Net factor income from abroad (-)10(iv) Net exports(-)15(v) Profits600(vi) Net indirect taxes60(vii) Mixed income of self employed350(viii) Rent200(ix) Interest310(x) Private final consumption expenditure1100(xi) Net domestic capital formation385(xii) Consumption of fixed capital65 |
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Answer» National income (income method) = Compensation of employees + Profits + Rent + Interest + Mixed income of self employed - Net factor income to abroad = 700 + 600 + 200 + 310 + 350 - 10 = 2150 crores National income (expenditure method) = Govt. final consumption expenditure+Net domestic capital formation+Net exports+Private final consumption expenditure-Net indirect taxes-Net factor income to abroad=750 + 385 - 15 + 1100 - 60 - 10 = 2150 crores |
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