From the above information calculate National income by expenditure method.

1758

GDP at MP (by Expenditure Method)≡  C + Ι + G +Change in stock+ X – M

where

C=the aggregate final consumption expenditure on the goods and services produced by the firm

I= the aggregate  final investment expenditure incurred by other firms on the capital goods produced by firm

G=the aggregate expenditure that the government makes on the final goods and services produced by firms

X= the export revenues

M=Imports Made 

Change in Stock =Closing Stock-Opening Stock= 35-30=5

tHEREFORE, GDP at MP (by Expenditure Method)= 397+764+919+28-50+5=2063

GNP at MP ≡ GDP at MP + Net factor income from abroad =2063-200=1863

NNP at MP ≡ GNP at MP – Depreciation=1863-100=1763

NNP at Factor Cost (National Income)= NNP at MP – Net indirect taxes (Indirect taxes – Subsidies)

=1763 - (50-45)

=1763-5

=1758

NNP at Factor Cost (National Income)=1758