Question
The Gross Domestic Product at Market Price (GDPmp) of an
economy is ₹2,500 billion. Indirect taxes amount to ₹300 billion and subsidies amount to ₹120 billion. What will be the GDP at Factor Cost (GDPfc)?Solution
GDP at Factor Cost = GDP at Market Price - Indirect Taxes + Subsidies =2500-300 + 120 = 2320 billion
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