NUMERICAL QUESTIONS OF MACROECONOMICS

1) Calculate GDPMP, NNPFC and Personal Income from the following

Net domestic product at market price
74905
Net indirect taxes
8344
Income from domestic product to government 1972
Net factor income from abroad
-232
Current transfers to household
2305
Depreciation
4486
(Answers: 79391, 66329, 66662)
2) National Income data of a country is given below:
Net indirect taxes
36
Consumption of fixed capital
34
Net factor income from abroad
-3
Rent
10
Profit
23
Interest
18
Wages and salaries
165
Employers contribution to social security
30
i.
Define and calculate GDPMP. (Ans:316)
ii.
Calculate NNPFC. What is the alternative name of NNP FC? How it is different from NNP MP?
(Ans:249)
3) The following are the Hypothetical data of an economy.
Items
Rs. in Crore
NDP at factor cost
15840
Income from domestic product accruing to the govt.
140
Interest on National Debt
170
Transfer Payments
240
Net factor income from rest of the world
80
Indirect taxes
1330
Subsidies
100
Direct tax on individuals
335
Tax on corporate profits
105
Depreciation
410
Answer the following Questions:
a) Define GDP and estimate GDPfc.
b) Explain NNPmp and also calculate NNPmp.
c) What is GNP? Estimate GNPmp.
d) Define NNPfc or National Income at factor cost. Differentiate NDP at factor cost and NI
at factor cost.
4) Consider the Following Schedule:

Items
Compensation to employees
Indirect Business taxes
Retained earnings
Direct taxes

In Billions of
Dollars
442
36
42
52

-Kamal Regmi (eco.kamalregmi@gmail.com)

Page 1

Personal savings
Consumption of fixed capital
Government and business transfers
Personal consumption expenditures
Rental earnings
Business interest payments
Net exports
Corporate dividends
Proprietors income
Net private domestic investment
Social insurance payments
Corporate profits
Government purchases
Corporate profit taxes
Subsidy

32
54
24
490
28
26
6
32
62
66
40
112
144
38
12

i. Compute GNP from both income and expenditure method.

ii. Compute national income and personal income.
5) Consider the following data and compute NNPMP, Personal Income and Personal saving.

Items
Government consumption expenditures
Indirect business taxes
Net capital formation
Current transfer from the government
Personal consumption expenditures
Opening Stocks
Corporate profits
Subsidy
Government investment expenditures
Closing stocks
Current transfer from business
Capital consumption allowance
Exports
Corporate dividends
Personal taxes
Social insurance payments
Imports
Rents
6) The national income data of a country is given below.
Wages and salaries
Rent
Interest
Dividend
Mixed income
Undistributed profit
Social security contribution

-Kamal Regmi (eco.kamalregmi@gmail.com)

Rs. In Millions
7200
1500
6000
4000
23000
4000
7000
800
8000
3500
3000
5000
2500
3000
2200
1100
3200
400
840
400
50
100
150
40
25

Page 2

Corporate tax
Personal tax
Transfer payments
Net income from abroad
Depreciation
Net indirect tax
Answer the following questions:
a) Estimate GNPMP.
b) Define NNP and calculate NNPMP.
c) Define NI at factor cost and estimate NI at factor cost.

20
100
75
150
1000
825

7) Calculate the National Income, Personal Income and Personal Disposable Income by
considering following data.
Wages
10000
Rent
5000
Interest
4000
Dividends
500
Mixed income
500
Undistributed profits
200
Social security contributions
300
Personal tax
300
Transfer payments
600
Net factor income from abroad
3000
8) Considering the following data, calculate GNPMP, GNPFC and NNPFC by using expenditure
method.
Private consumption expenditure
5000
Interest
900
Government expenditure
2000
Rent
500
Indirect taxes
300
Social security contributions
80
Personal income tax
200
Undistributed profits
325
Dividends
350
Wages and salary
2500
Corporate tax
500
Net domestic investment
375
Net foreign investment
100
Transfer payments
250
Depreciation
400
9) Consider the following data.
Gross Private domestic Investment
Exports
Personal tax payments
Capital Consumption Allowance
Imports
Personal consumption expenditures
Government Purchases
Personal Income

-Kamal Regmi (eco.kamalregmi@gmail.com)

666.1
363.2
498.2
441.4
451.0
2606.1
832.5
3298.5

Page 3

Calculate:
i)
ii)

Net national Product

Personal saving

10) Let there are only three producing companies, i.e. wheat farm, textile industry and noodle
industry in a hypothetical economy. In order to produce wheat, cloth and noodles respectively,
Following figures related to output, income and expenditure are generated from these
companies in that economy during a year.

Description
Wheat
Cloth
Noodles
Raw materials used by all
companies
Depreciation
Indirect business taxes
Corporate profits
Dividends
Net receipts (R-P)
Subsidies
Government and business transfers
Social insurance payments

Quantity
(Units)
10000
18000
13000

Price
(per unit)
800
200
1100

Amount
(in $)
..

20000
30000
25000
40000
5000
4000
15000
53000
7000

Compute:
a) GNPMP by final product method.
b) Personal income

11) Calculate Nominal GDP, Real GDP, GDP deflator and rate of Inflation from the following
table.

Goods
and
Services
Shirt
T-shirt

Price2007

Quantity200

Price2008

Quantity2008

Price2009

Quantity2009

470
210

12
6

480
250

15
4

400
200

10
5

12) Calculate from NI from both income and expenditure method.

Private consumption expenditure

Net indirect taxes

3500
Wages and salaries

40
Net exports

-Kamal Regmi (eco.kamalregmi@gmail.com)

Page 4

1585
Proprietors income

-45
Capital consumption allowance

480
Net domestic capital formation

60
Government expenditure

340
Rental income

1450
Business interest payment

800
Corporate dividends

600
Mixed income of self employed

650
Net factor income from abroad

340
Corporate profit tax

420
Undistributed profit

300

450
13) In a hypothetical economy, there are three industries producing wheat, flour and bread. One
third of the total production of wheat is used by farmers and half of the flour is used by
consumers directly. The expenditure and income accounts of the economy is given below:

Description
Wages
Dividends
Interest
Purchase of wheat
Wages
Interest
Dividends
Purchase of flour
Dividends
Wages
Interest

Expenditure
Farmers (producer of wheat)
1200
0
1500
Flour Mill
2000
900
600
1200
Bread industry
2000
2500
1000
1100

Receipt
3000

4000

7000

a. Calculate nominal GDP from final product approach; value added approach and income
approach.
b. Compare three answers.
14) Calculate NI, PI and personal saving from the following data.
Personal consumption expenditure
2345
Net capital formation
240
Exports
60
Change in stocks
-20
Subsidies
20
Govt. purchases
1200

-Kamal Regmi (eco.kamalregmi@gmail.com)

Page 5

Gross capital formation

Social security contributions
Indirect business taxes
Personal income tax
Imports
Net retained earning from rest of the world
Corporate income tax
Government and business transfers

280
230
45
80
90
55
65
100

15) Calculate rate of inflation from the following table.

Commoditi
es
Wheat
Paddy
Maize

Price
2001
20
25
15

Price 2002 Qty. 2001

Qty. 2002

22
28
16

400
1200
550

350
400
600

16) Given the data of a hypothetical economy.

Personal consumption expenditure
Net fixed capital formation
Government purchases
Capital consumption allowance
Total receipts
Change in inventories
Total payments
Net exports
Net Indirect taxes
a) Define and Calculate GDPFC.
b) Calculate NNPMP and National income.

2450
245
400
55
80
100
120
40
60

17) Given the data of a hypothetical economy find NI.

Consumption expenditure
1200
Gross capital formation
800
Rent
600
Interest
200
receipts from abroad
500
Government expenditure
2000
Net Capital formation
500
Net Exports
500
Imports
300
Payments made to abroad
900

-Kamal Regmi (eco.kamalregmi@gmail.com)

Page 6