Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

If,

Gross Domestic Product at Market Price (GDPmp) = 2995 crore.

Private final consumption expenditure = 1100 crore.

Gross domestic fixed capital formation = 1000 crore.

Government final consumption expenditure = 900 crore.

Net imports = 75 crore.


The change of stock will be:

Options:

(-) 80 crore 

80 crore   

70 crore   

75 crore

Correct Answer:

70 crore   

Explanation:

GDPMP = Private final consumption expenditure + Government final consumption expenditure + Gross domestic capital formation + Net exports

GDPMP = Private final consumption expenditure + Government final consumption expenditure + (Gross domestic fixed capital formation + Change in stocks) + Net exports

2995 crore = 1100 crore + 900 crore + (1000 crore + Change in stocks) + (-75 crore)

2995 crore = 2000 crore + 1000 crore + Change in stocks - 75 crore

2995 crore = 2925 crore + Change in stocks

Change in stocks = 2995 crore - 2925 crore

Change in stocks = 70 crore