Question

Suppose the GDP at market price of a country in a particular year was ₹ 1, 100 crores . Net factor Income from Abroad was ₹ 100 crores . The value of (Indirect taxes - Subsidies) was ₹ 150 crores and National Income was ₹ 850 crores. Calculate the aggregate value of depreciation.

Answer 1

National income `(or N NP_(FC))=GDP_(MP)-"Depreciation"+"Net factor income from abroad - Net indirect taxes"`.
`850=1100-"Depreciation"+100-150`
Depreciation `=1100+100-150-850`
Depreciation `=Rs 200` crore