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Calculate (a) GNP mp (b) Personal Disposable Income from the following data:

(i) Net factor income to abroad10
(ii) Private Income1700
(iii)Operating surplus 300 
(iv)Corporation Tax150
(v)Undistributed profit30
(vi)Mixed Income500
(vii)consumption of fixed capital 100 
(viii) Personal taxes200
(ix) Compensation of employees 1200 
(x) Net indirect tax 250

1 Answer

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Best answer

NDPfc = COE + OS + MI 

 = 1200 + 300 + 500 

 = 2000 

GNPmp = NDPfc + dep + NIT + NFIA 

 = 2000 + 100 + 250 + (-10) 

GNPmp = 2340 

PDI = Private income – corporate tax – undistributed profit – personal tax  

= 1700 – 150 – 30 – 200 

PDI = 1320

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