Calculate GDP mp.
- Private final consumption expenditure = Rs 200 Cr
- Indirect Tax = Rs30 Cr
- Government final Consumption expenditure = Rs 100 Cr
- Net Exports = Rs 50 Cr
- Gross Domestic Capital formation = Rs 50 Cr
- Depreciation- Rs 20 Cr
Answer & explanation
Correct answer: option 2
National income can be estimated with the help of 3 methods i.e. Income method, Expenditure method, and Value added method. In this question, we will be estimating GDPMP with the help of "Expenditure method"
GDPMP = Private final consumption expenditure + Government final consumption expenditure + Gross domestic capital formation + Net exports (X - M)
According to the question:
GDPMP = 200 crore + 100 crore + 50 crore + 50 crore
GDPMP = 400 crore