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Economics · 2025 · 3 marks
CBSE 2025 · Region 5 · Set 2 · Q12
On the basis of the following hypothetical data, calculate the percentage change in Real Gross Domestic Product (GDP) in the year $\displaystyle 2022$ – $\displaystyle 23$, using $\displaystyle 2020$ – $\displaystyle 21$ as the base year.(All figures in ₹ crore)Year Nominal GDP Nominal GDP (Adjusted to Base Year Price) $\displaystyle 2020$ – $\displaystyle 21$ $\displaystyle 3,000$ $\displaystyle 5,000$ $\displaystyle 2022$ – $\displaystyle 23$ $\displaystyle 4,000$ $\displaystyle 6,000$
State the steps pertaining to the estimation of National Income, under the Expenditure Method.
On the basis of the following hypothetical data, calculate the percentage change in Real Gross Domestic Product (GDP) in the year $\displaystyle 2022$ – $\displaystyle 23$, using $\displaystyle 2020$ – $\displaystyle 21$ as the base year.
(All figures in ₹ crore)
| Year | Nominal GDP | Nominal GDP (Adjusted to Base Year Price) |
| $\displaystyle 2020$ – $\displaystyle 21$ | $\displaystyle 3,000$ | $\displaystyle 5,000$ |
| $\displaystyle 2022$ – $\displaystyle 23$ | $\displaystyle 4,000$ | $\displaystyle 6,000$ |
State the steps pertaining to the estimation of National Income, under the Expenditure Method.
Marking-scheme solution
Percentage change in Real Gross Domestic Product (GDP) in the year $\displaystyle 2022$-$\displaystyle 23$
$\displaystyle = \dfrac{\text{Change in Real GDP}}{\text{Real GDP}} \times 100$
$\displaystyle = \dfrac{6000 - 5000}{5000} \times 100$
$\displaystyle = 20\%$
Steps pertaining to the estimation of National Income under the Expenditure method are:
1. Identify and classify all the economic units incurring final expenditure as Households, Firms, Government and rest of the world.
2. Estimate and classify the final expenditure incurred by the economic units as Private Final Consumption Expenditure (PFCE), Government Final Consumption Expenditure (GFCE), Gross Domestic Capital Formation (GDCF) and Net Exports (X-M). The sum total of four components of final expenditure represents Gross Domestic Product at Market Price ($\displaystyle \text{GDP}_{MP}$).
3. Finally, estimate and subtract the value of Depreciation and Net Indirect Taxes and add the value of Net Factor Income from Abroad (NFIA) to arrive at National Income ($\displaystyle \text{NNP}_{FC}$).
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CBSE Class 12 Economics past-paper question from the 2025board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.