Question

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

(i) Net factor income to abroad	10
(ii) Private Income	1700
(iii)Operating surplus	300
(iv)Corporation Tax	150
(v)Undistributed profit	30
(vi)Mixed Income	500
(vii)consumption of fixed capital	100
(viii) Personal taxes	200
(ix) Compensation of employees	1200
(x) Net indirect tax	250

Answer 1

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