Re: JNU 2013 SSS DISCUSSION

Posted by Arushi :)) on May 06, 2014; 2:17am
URL: http://discussion-forum.276.s1.nabble.com/JNU-2013-SSS-DISCUSSION-tp7584716p7588693.html

For 25th its d.
According to krugman pg 292
National income = GNP - Depreciation + Net unilateral transfers
Here , remit means sending gifts ,
So we are getting 150 and sending 100
=> Net unilateral transfers are 50
Now , National income is also given by
NNP fc = GDP mp + Net indirect taxes - Depreciation + NFIA
Now foreign investors repatriate means they are taking 50 out of country
this means this a factor income paid to them
and factor income received is 10.
we can take net indirect taxes and depreciation to be zero because nothing is given about them
equating the two formulaes:
GNP+50 = GDP mp + 10 -50
therefore GNP equals 5000000+10-100= 4999910