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Subjects
Class 11EconomicsNational Income and Related AggregatesGDP and WelfareMediumLevel 25

If NNP_FC is 4,550 crore, depreciation is 650 crore and NFIA is 150 crore, what will GDP_FC be?

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Answer and explanation

Correct answer: 5,050 crore

Add depreciation to NNP_FC to obtain GNP_FC: 4,550 + 650 = 5,200 crore. National product equals domestic product plus NFIA, so GDP_FC = GNP_FC - NFIA. Therefore, GDP_FC = 5,200 - 150 = 5,050 crore. The positive NFIA is deducted when converting from national to domestic product.

Tags

economicsGDP_FCNNP_FCNFIAdepreciationconversionGDP and WelfareNational Income and Related Aggregates

Frequently asked questions

What is the correct answer to this question?

5,050 crore

Why is this the correct answer?

Add depreciation to NNP_FC to obtain GNP_FC: 4,550 + 650 = 5,200 crore. National product equals domestic product plus NFIA, so GDP_FC = GNP_FC - NFIA. Therefore, GDP_FC = 5,200 - 150 = 5,050 crore. The positive NFIA is deducted when converting from national to domestic product.

Which subject and chapter does this question cover?

This is a Class 11 Economics question. Chapter: National Income and Related Aggregates. Topic: GDP and Welfare.

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