Calculating GDP, GNP, Net National P

PREPARED BY VINOD GANDHI PGDM-HR (IMI, New Delhi) Consumption Year 1 Investment Property Income earned overseas Property income paid overseas Subsidies Indirect Taxes Exports Imports Depreciation Government Spending
Year 5

600 960 134 340 75 120 95 95 55 110 85 150 80 150 105 125 70 90 280 270 National Income = Wages + Interest Income + Rental Income + Profit 1 GDP at market prices
C+I+G+(E-M) year1 year5 989 1595

2 GNP at market prices GNP = GDP + Property income earned overseas - paid overseas
GNP = GDP + Net property income from abroad (NPIA)

969

1620

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

3 GNP at factor cost

939 4 Net National Product

1580 National Income

NNP = GNP at factor cost Depreciation => NNP = GNP - Indirect Tax. - Dep.
869 1490

5 Net Domestic product

NDP = GDP - depreciation 919

Transfer Payments Interest Income (i) Depreciation Wages (W) Gross Private Investment Business Profits (PR) Indirect Business Taxes Rental Income (R) Net Exports Net Foreign Factor Income 54.00 150.00 36.00 67.00 124.00 200.00 74.00 75.00 18.00 12.00

1505

Government Purchases Household Consumption

156.00 304.00

Using the Expenditures Approach

GDP = C + G + I + (X - M)

$602.00

Using the Income Approach

NI = W + R + i + PR

National Income NI = 492.00

GDP = NI + Indirect Business Taxes + Depreciation

GDP=

$602.00

NP, Net National Product and National Income

ct Taxes + Subsidies