Calculate National income:
| Government final consumption expenditure | 3,000 |
| Private final consumption expenditure | 4,500 |
| Gross domestic capital formation | 1,000 |
| Net exports | 600 |
| Net factor income from abroad | 100 |
| Net indirect taxes | 300 |
| Subsidies | 40 |
| Change in stock | 80 |
| Consumption of fixed capital | 120 |
Answer & explanation
Correct answer: option 2
The correct answer is option 2: 8780
GDPMP = Private final consumption expenditure + Government final consumption expenditure + Gross domestic capital formation + Net exports
= 4,500 + 3,000 + 1,000 + 600
= 9,100
NDPMP = GDPMP - Depreciation
= 9,100 - 120
= 8,980
NDPFC = NDPMP - Net Indirect taxes
= 8,980 - 300
= 8,680
National income (NNPFC) = NDPFC + NFIA
= 8,680 + 100
= 8,780