Calculating GDP, GNP, Net National Product and National Income

PREPARED BY VINOD GANDHI PGDM-HR (IMI, New Delhi)Consumption Year 1 Year 5Investment 600 960Property Income earned overseas 134 340Property income paid overseas 75 120Subsidies 95 95Indirect Taxes 55 110Exports 85 150Imports 80 150Depreciation 105 125Government Spending 70 90

280 270National Income = Wages + Interest Income + Rental Income + Profit

1 GDP at market pricesC+I+G+(E-M)

year1 year5989 1595

2 GNP at market prices

969 1620

GNP at factor cost = GNP at market prices - Indirect Taxes + Subsidies3 GNP at factor cost

939 1580

4 Net National Product National Income

869 1490

5 Net Domestic productNDP = GDP - depreciation

919 1505

GNP = GDP + Net property income from abroad (NPIA)

GNP = GDP + Property income earned overseas - paid

overseas

NNP = GNP at factor cost - Depreciation

=> NNP = GNP - Indirect Tax. - Dep.

Transfer Payments 54.00

Interest Income (i) 150.00

Depreciation 36.00

Wages (W) 67.00

Gross Private Investment 124.00

Business Profits (PR) 200.00

Indirect Business Taxes 74.00

Rental Income (R) 75.00

Net Exports 18.00

Net Foreign Factor Income 12.00

Government Purchases 156.00

Household Consumption 304.00

Using the Expenditures Approach GDP = C + G + I + (X - M)

$602.00

Using the Income Approach

National Income NI =492.00

GDP = NI + Indirect Business Taxes + Depreciation

GDP= $602.00

NI = W + R + i + PR

Calculating GDP, GNP, Net National Product and National Income

GNP at factor cost = GNP at market prices - Indirect Taxes + Subsidies

Calculating GDP, GNP, Net National Product and National Income