jnu 2006

[Arushi :))]

GDP at factor cost- 10,000
Depreciation        -      500
Net factor income-( -1000)
from abroad
Net indirect taxes - 1500
gross savings of   -  2600
economy
gross investment -  3000
of the Economy
gross fiscal deficit -   150
Calculate:
a) Net domestic product at factor cost.
b) Net domestic product at market prices.
c) Net National product at market prices.
d) Current account deficit in the balance of payments.
e) The excess of Private Investment over Private Savings.
I am getting the following answers,
a) 9500
b) 11000
c) 10000
d) -400
e) 550
Please someone confirm.

[Akshay Jain]

For this ques refer 12th cls macro book.....
dnt remember anythin bout nationl income accountin..

[Economics student]

1-4 all match. Could you tell me how you did the 5th one?

[Arushi :))]

Thanks saloni..
yeah sure,
In an open economy,
Gross savings = S = I + CA
Now, S = Sp + Sg ( private savings + savings by govt.)
Sp+Sg= I+CA
I-Sp= Sg-CA
Govt savings are T- G = Gross Fiscal deficit , which is positive here .
So, Sg = 150
CA= -400 from previous part.
I-Sp= 150+400=550

[Arushi :))]

@ saloni
please answer this too
http://discussion-forum.2150183.n2.nabble.com/jnu-2006-tp7586732.html

[The Villain]

Yes @arushi...i got the same

[Arushi :))]

@ Ron,
please answer the question to which i have shared the link..

[SoniaKapoor]

Please help me with part d...

[Arushi :))]

@ sonia,
in an open economy S=I equation changes to S=I+CA
S= 2600, I=300
This gives CA = -400

[SoniaKapoor]

Thanxx Arushi

[Ashima]

Arushi could you please solve all the questions in detail; I am very bad such type of questions.

Please :)

[The Villain]

@Ashima
1) NDP at FC=GDP at FC- deprec
=10000-500=9500

2)NDP at MP=GDP at FC-deprec+NET INDIRECT TAX=10000-500+1500=11000
3)NNP at MP=NDP at MP-NFIA=11000-1000=10000

[Anjali]

Arushi here gross fiscal deficit is positive , so doesn't that mean that govt savings are negative ?