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National Income Formulas for Class 12

The document outlines key formulas related to national income and aggregates for Class 12. It includes calculations for GDP at market price, factor cost, net indirect taxes, and various income measures such as personal and national disposable income. Each formula is defined to help understand the relationships between different economic indicators.

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136 views2 pages

National Income Formulas for Class 12

The document outlines key formulas related to national income and aggregates for Class 12. It includes calculations for GDP at market price, factor cost, net indirect taxes, and various income measures such as personal and national disposable income. Each formula is defined to help understand the relationships between different economic indicators.

Uploaded by

uncannyous
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

National Income and Aggregates - Class 12 Formulas

1. GDP at Market Price (GDP_MP)

GDP_MP = C + I + G + (X - M)

2. GDP at Factor Cost (GDP_FC)

GDP_FC = GDP_MP - Net Indirect Taxes

3. Net Indirect Taxes (NIT)

NIT = Indirect Taxes - Subsidies

4. Net Domestic Product at Factor Cost (NDP_FC)

NDP_FC = GDP_FC - Depreciation

5. Net National Product at Factor Cost (NNP_FC or National Income)

NNP_FC = NDP_FC + Net Factor Income from Abroad

6. Net Factor Income from Abroad (NFIA)

NFIA = Factor income received from abroad - Factor income paid to abroad

7. Private Income

Private Income = Factor Income from Private Sector + Net Factor Income from Abroad + Transfer

Income

8. Personal Income

Personal Income = Private Income - Corporate Tax - Undistributed Profits

9. Personal Disposable Income

Personal Disposable Income = Personal Income - Personal Taxes

10. National Disposable Income

National Disposable Income = NNP_FC + Net Indirect Taxes + Current Transfers from Rest of the

World

11. Domestic Income (NDP_FC)


Domestic Income = Compensation of Employees + Operating Surplus + Mixed Income

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