Question
Identify the correct formula which states the relation
between GDP and GVA.Solution
GDP (MP) = ∑ GVA (Basic Prices) + Product Taxes – Product Subsidies We can also write above formula as GDP (MP) = ∑ GVA (Basic Prices) + Net Product Taxes. Here, it’s important to understand the concepts of Factor Cost, Basic Prices, Market Price, Product Taxes and Production taxes. Watch vide again and make your own notes.
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