Estimate the missing values (?), if the value of Gross Domestic Product at factor cost (GDP_FC) by Expenditure Method and Income Method is Rs. 920 crore :

Question

Accepted Answer

Given: GDP_FC by Expenditure Method = GDP_FC by Income Method = Rs. 920 crore

Using Expenditure Method:
GDP_FC = C + G + I + (X-M) - NIT
Where C = Private Final Consumption Expenditure
G = Government Final Consumption Expenditure
I = Gross Domestic Capital Formation
(X-M) = Net Exports
NIT = Net Indirect Taxes

Using Income Method:
GDP_FC = Compensation of Employees + Operating Surplus + Mixed Income

The missing values can be calculated by equating both methods and solving for the unknown variables. The key is that both methods should yield the same GDP_FC value of Rs. 920 crore.