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Example 29
Calculate 'Gross Domestic Product of Factor Cost' from the following data:
In this question
We are given Net Domestics Capital Formation (and not gross)
So we use following Steps
Step 1 Calculate Gross Domestic Capital Formation
Gross Domestic Capital Formation
=Net Domestic Capital formation +Depreciation
=Net Domestic Capital formation +Consumption of Fixed Capital
150 + 50 = 200
Step 2 Calculate GDP FC
Example 28
Calculate GNP at FC:
In this question, we have to calculate GNP FC
and not NNP FC
So we will not use depreciation
In this question
We are given Net Domrstic Fixed Capital Formaton
First we calculate Gross Domestic Fixed Capital formation
and from that,we calculate
Gross Domestic Capital formation
So we use following Steps
Step 1 Calculate Gross Domestic Fixed Capital Formation
=Gross Fixed Capital formation
=Net Fixed Capital formation +Depreciation
=Net Fixed Capital formation +Consumption of Fixed Capital
=350+50
=400
Step 2 Calculate Gross Domestic Capital Formation
Gross Domestic Capital Formation
=Expenditure on Fixed Assets +Expenditure on Stock
=Gross Fixed Capital formation + Inventory Investment
=Gross Fixed Capital formation +(Closing Stock-Opening Stock)
400 + (100 - 60 ) = 440
Step 3 Calculate GNP FC
Question 28
Calculate NDP at FC.
In this question, we need to calculate NDP at FC
So we use following format
Question 27
Calculate GNP at MP.
In this question, we need to calculate GNP MP
So we use following format
Note
Personal final consumption Expenditure and Persona Consumption expenditure are Sam things
Govt Final Consumption Expenditure and Govt Consumption expenditure are different things
But we need to calculate Gross domestic Capital formation and Nest Exports
Step 1 We calculate Net Exports
Net Exports
=Exports of goods and servives -Imports of goods and services
450 - 500 = -50
Step 2 We calculate Gross Domestic Capital Formation
* Gross Domestic Capital Formation
=Expenditure on Fixed Assets +Expenditure on Stock
=Gross Fixed Capital formation + Inventory Investment
=2500+ Inventory Investment
=2500+ (Closing Stock-Opening Stock)
=2500+ (Increase in Stock)
=2500 -Fall in Stock
=2500 -300
=2200
Step 3
We calculate GNP MP using this format
