Suppose, the Gross Domestic Product (GDP) at market price of a country in a particular year was Rs. 1,100 crore. Net Factor Income from abroad was Rs. 100 crore. The value of Net Indirect Taxes was Rs. 150 crore and the National Income was Rs. 850 crore. Calculate the value of depreciation for the economy.

Question

Accepted Answer

Given:
GDP_MP = Rs. 1,100 crore
NFIA = Rs. 100 crore
NIT = Rs. 50 crore
Depreciation = Rs. 100 crore

Calculation:
1. GNP_MP = GDP_MP + NFIA = 1100 + 100 = Rs. 1,200 crore
2. GNP_FC = GNP_MP - NIT = 1200 - 50 = Rs. 1,150 crore
3. NNP_MP = GNP_MP - Depreciation = 1200 - 100 = Rs. 1,100 crore
4. NNP_FC = GNP_FC - Depreciation = 1150 - 100 = Rs. 1,050 crore (National Income)