Macro

National Income

Medium

Identify the correct formula of calculating of domestic income by Expenditure Method.

$GDP_{MP} = PFCE + GFCE + NDCF - NE$

$GDP_{MP} = PFCE - GFCE + GDCF - NE$

$GDP_{MP} = PFCE + GFCE + GDCF + NE$

$GDP_{MP} = PFCE - GFCE - NDCF + NE$

✅ Correct Option: 3

By the Expenditure Method: $GDP_{MP} = PFCE + GFCE + GDCF + Net Exports$ , where PFCE is private final consumption expenditure, GFCE is government final consumption expenditure, GDCF is gross domestic capital formation, and NE is net exports. All four components are added together. Hence option 3 is correct.

2022: 30 Aug Shift 2

Choose the correct sequence to arrive at $NNP_{FC}$ using value added method.

(A) $GDP_{MP}$ - Depreciation

(B) $NDP_{MP}$ - Net Indirect Taxes

(D) Domestic income + Net factor income from abroad

Choose the correct answer from the options given below :

2024: 16 May

Nominal Interest Rate =

2023: 30 May Shift 1

What will be the GDP by Income Method in crore ?

	Firm A	Firm B
Wages	20	60
Profits	30	90

2022: 19 July Shift 2

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 :

2025: 13 May Shift 1

The index of prices of a given basket of commodities which are bought by the representative consumer is known as :

2026: 19 May Shift 2

Choose the correct statement from the following.

Identify the correct formula of calculating of domestic income by Expenditure Method.

Solution

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