1.

Write the equation of GDPMP and GDPFC.

Answer»

The equations of GDP and market prices (GDPMP), and GDP at factor cost (GDPFC) are as follows:

GDPMP = C + I + G + X-M

Where, C is consumption expenditure, I is ainvestment expenditure; G is government’s consumption and investment expenditure; X is exports and M is imports.

GDPFC = GDPMP – NIT (where, NIT is net indirect taxes).



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