Question

GDPF = Gross Domestic Product at Factor Cost; GDPM = Gross Domestic Product at Market Price; NNPF= Net National Product at Factor Cost; C = Consumption; I = Investment; G = Government Expenditure; X = Export; M = Import; T = Tax; S = Saving; D = Depreciation; NIA = Net Income from Abroad
Which of the following expressions is/are CORRECT?

• A. 𝐺𝐷𝑃𝐹 = 𝐶 + 𝐼 + 𝐺 + 𝑋 – M
• B. 𝐺𝐷𝑃𝑀 = 𝐶 + 𝐼 + 𝐺 + 𝑋 – M
• C. 𝑁𝑁𝑃𝐹 = 𝐶 + 𝐼 + 𝐺 + 𝑋 – 𝑀 – 𝑇 + 𝑆 – 𝐷 + 𝑁𝐼A
• D. 𝑁𝑁𝑃𝐹 = 𝐶 + 𝐼 + 𝐺 + 𝑋 – 𝑀 – 𝑇 + 𝑆 – D

Answer 1

Answer: (B)

𝐺𝐷𝑃𝑀 = 𝐶 + 𝐼 + 𝐺 + 𝑋 – M

Answer 2

The correct option is (B): 𝐺𝐷𝑃𝑀 = 𝐶 + 𝐼 + 𝐺 + 𝑋 – M