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Questions › IIT JAM › IIT JAM 2021 › Q50
1 markMacroeconomics › National income accounting › The expenditure methodModerateabout 2 min

IIT JAM 2021 Question 50: National income accounting

For a country's GDP in 2012-13 (local currency): GDP 59,816; private investment 17,811; exports 14,498; government investment 5,087; net factor income from abroad 125; government consumption 6,620; private consumption 35,695. The value of imports in 2012-13 is _______ (in integer).

Answer and worked solution

Answer: 19895

The expenditure identity is GDP=C+I+G+X−MGDP = C + I + G + X - MGDP=C+I+G+X−M, so M=C+I+G+X−GDPM = C + I + G + X - GDPM=C+I+G+X−GDP.

Summing consumption, investment, government spending and exports gives 35695+17811+6620+5087+14498=7971135695 + 17811 + 6620 + 5087 + 14498 = 7971135695+17811+6620+5087+14498=79711, and subtracting GDP 598165981659816 gives imports 198951989519895. Net factor income from abroad relates to GNP, not GDP, so it is not used. The answer is 198951989519895.

National income accounting has come up 132 times in 6 exams since 2010.

What this question tests

This question is on The expenditure method, part of National income accounting in Macroeconomics.

Measuring GDP as consumption, investment, government spending and net exports.

TestStop has 17 past-paper questions on this subtopic.

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