Question

Calculate Net National Product at fc and Gross National Disposable Income from the following: 

(i) Saving of non departmental enterprises	50
(ii) Income from property & entrepreneurship accruing to the govt. Admn. Dept.	70
(iii)Personal tax	90
(iv)National debt interest	20
(v)Retained earnings of private corporate sector	10
(vi) Current transfer payments by govt.	40
(vii)Consumption of fixed capital	60
(viii) Corporate tax	30
(ix) NIT	80
(x) Net Current transfer from rest of the world	(-)10
(xi) Personal Disposable Income	1000

Answer 1

PDI = Personal income – personal tax 

 1000 = PI – 90 = 1090 

Personal Income = private income – viii) + v) 

1090 = Pvt Income – 30 – 10 

1130 = Pvt Income 

Pvt income = pvt sector' income + NFIA + National debt interest + vi) + x) 

 1130 = pvt sector’s income + 0 + 20 + 40 + (- 10) 

 1130 - 50 = 1080 = pvt sector’s income

NNPfc = 1080 + i) + ii)+ NFIA 

 = 1080 + 50 + 70 +0 

NNPfc = 1200 

GNDI = GNPmp + net current transfer from abroad = 1200 + 60 + 80 + (-10) 

GNDI = 1330