## Book: Introductory Macroeconomics

### Chapter: 2. National Income Accounting

#### Subject: Social Science - Class 12th

##### Q. No. 9 of Exercises

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9
##### From the following data, calculate Personal Income and Personal Disposable Income.Rs (crore)(a) Net Domestic Product at factor cost8,000(b) Net Factor Income from abroad200(c) Undisbursed Profit1,000(d) Corporate Tax500(e) Interest Received by Households1,500(f) Interest Paid by Households1,200(g) Transfer Income300(h) Personal Tax500

Personal Income (PI) = NDPFC+ Net factor income from abroad (NFIA) + Transfer Income - Undistributed profit - corporate tax - Net interest paid by households

NDPFC= Rs.8000 crores

NFIA = Rs.200 crores

Transfer Income = Rs.300 crores

Undistributed profit = Rs. 1,000 crores

Corporate tax = Rs.500 crores

Net interest paid by households = Interest paid - Interest received

= 1200 – 1500

= (-) Rs.300 crores

PI = 8000 + 200 + 300 - 1000 - 500 - (- 300)

= 8000 + 200 + 300 - 1000 - 500 + 300

PI = 7300

Personal Disposable income = Personal Income - Personal Payments

= 7300 – 500

= Rs.6800 crores

9

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