Northspread
Formula sheet/NISM Series XV: Research Analyst/Economic Analysis
[ ECONOMIC ANALYSIS ]

National Income Aggregates & Per Capita Income

GNP=GDP+Net Factor Income from Abroad(NFIA)GNP = GDP + \text{Net Factor Income from Abroad} (NFIA)
GDP(Expenditure Approach)=C+I+G+(X−M)GDP (\text{Expenditure Approach}) = C + I + G + (X - M)
Per Capita Income=National IncomeTotal Population\text{Per Capita Income} = \dfrac{\text{National Income}}{\text{Total Population}}
Variables

C: Private Consumption; I: Capital Formation/Investment; G: Govt Expenditure; (X - M): Net Exports. National Savings: Personal Savings + Corporate Savings + Public Savings.

Exam note

Per capita income reflects standard of living far better than headline aggregate GDP.

Worked example
GDP by Expenditure Method, GNP, and Per Capita Income

An economy presents the following data (in Rs Lakh Crore): Private Consumption (C) = 140, Gross Capital Formation (I) = 65, Government Spending (G) = 35, Exports (X) = 45, Imports (M) = 55, Net Factor Income from Abroad (NFIA) = -5. Total population is 140 Crore. Calculate GDP, GNP, and Per Capita GNP.