Page 39 - DECO201_MACRO_ECONOMICS_ENGLISH

Macro Economics

Notes (a) What is the value added at each stage?
(b) How much does this output contribute to GDP?
(c) How would answer (ii) change if the timber were imported from Bangladesh?
6. (a) Calculate national income from the following figures (in crores):
Consumption 200
Depreciation 20
Retained earning 12
Gross investment 30
Import 40
Provident fund contributions 25
Exports 50
Indirect business taxes 15
Government purchases 60
Personal income taxes 40
(b) If there were 10 crores people in this country
(c) If all prices were to double overnight, what would happen to the value of real and
nominal GDP per capita?

7. Use the following data to compute GNP, NNP and NI. If NI computed at factor cost is 3,387
crores, what is the statistical discrepancy?
(Note: All figures are in crores; any omitted items are zero).

Depreciation 455
Indirect business taxes 349
Gross investment 675
Consumption 2,762
Net exports 106
Government purchase 865
8. Use the following information to compute national income, personal income and
disposable personal income for the year. (Note: All figures are in billions; any omitted
items are zero).
Corporate profits 300
Net interest 295
Provident fund contributions 376
Wages and salaries 2,499
Income of self-employed 279
Rental income 16
Dividends 88
Corporate profit taxes 103
Government transfers 491
Undistributed profits 46
Personal tax 513
Business transfers 23

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