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Suppose the GDP at market price …

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Suppose the GDP at market price of a country in a particular year was rupees 1100 crore.Net factor income from abroad was rupees 100crore.The value of Indirect tax-subsidies was Rs.150 crore and national income was Rs.850crore.Calculate the aggregate value of depreciation.
  • 1 answers

Gaurav Seth 5 years, 1 month ago

National Income (NNPFC) = Rs.850 crores

GDPMP = Rs.1100 crores

Net factor income from abroad = Rs.100 crores

Net indirect taxes = Rs.150 crores

NNPFC = GDPMP + Net factor income from abroad − Depreciation − Net indirect taxes

Putting these values in the formula,

850 = 1100 + 100 − Depreciation − 150

⇒ 850 = 1100 − 50 − Depreciation

⇒ 850 = 1050 − Depreciation

⇒ Depreciation = 1050 − 850 = Rs.200 crores

So, depreciation is Rs.200 crores.

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