How to find GDP at market price,GDP at factor cost, GNP at market price, GNP at factor cost and NNP at market price.give examples
To find GDP at market price, you need to add up all the final goods and services produced within a country in a given year, including taxes and subsidies. This is commonly calculated using the formula:
GDP at market price = GDP at factor cost + Indirect Taxes - Subsidies
For example, if the GDP at factor cost is $10 trillion and indirect taxes are $1 trillion while subsidies are $0.5 trillion, then GDP at market price would be:
$10 trillion + $1 trillion - $0.5 trillion = $10.5 trillion
To find GNP at market price, you would add net income earned from abroad (Net Factor Income from Abroad) to the GDP at market price. This is calculated using the formula:
GNP at market price = GDP at market price + Net Factor Income from Abroad
For example, if the GDP at market price is $10.5 trillion and net factor income from abroad is $0.5 trillion, then GNP at market price would be:
$10.5 trillion + $0.5 trillion = $11 trillion
To find NNP at market price, you would subtract depreciation (or capital consumption) from GNP at market price. This is calculated using the formula:
NNP at market price = GNP at market price - Depreciation
For example, if GNP at market price is $11 trillion and depreciation is $1 trillion, then NNP at market price would be:
$11 trillion - $1 trillion = $10 trillion
These calculations are crucial for understanding the economic health and growth of a country.