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Friday, September 25, 2015

All Macroeconomics Formulae From Class XI WBCHSE Economics Syllabus : Covered

The two separate methods of calculating Index Number :-

  • Simple Aggregative Method
  • Weighted Aggregative Method

Simple Aggregative Method

Ion = {∑(pni/p0i) x 100}/k     Please note that 'x' denotes multiplication and k refers to the number of commodities the index number is being calculated for.Also,pni and p0i denote prices in the current year and that in the base year respectively.



Weighted Aggregative Method


Ion = {∑(pni/p0i) x wi x 100}/∑wi  Please note that 'x' denotes multiplication and wi refers to the weightage value of the particular commodity.Also,pni and p0i denote prices in the current year and that in the base year respectively.




Domestic Product (DP)

  • GDP = Consumption + Investment + Government Expenditure + (Exports - Imports)

  •     NDP = GDP - Depreciation 

  • NGDP = Volumes of production of goods and services within the economy during the year multiplied by their prices and added by avoiding multiple counting


  • RGDP = Considering a particular year as a base year,we have to find values of volumes of production in the current year and add them up.

Therefore RGDP = (Nominal GDP of Current Year x 100)/Price Index number of Current year with respect to base year


    • Per Capita Real Gross Domestic product = RGDP of the country during the particular year/Population of the country during the mid-point of the year





  • Per Capita Nominal Gross Domestic product = NGDP of the country during the particular year/Population of the country during the mid-point of the year


  • National Product (NP)


    • GNP = Consumption + Investment + Government Expenditure + (Exports - Imports) + NR (Net Income Receipts) - NP (Net payment outflow to foreign assets) 

    = GDP + NR (Net Income Receipts) - NP (Net payment outflow to foreign assets) 

    • GNP = Gross Value of Output of the Public Sector + Gross Value Added by the Public Sector Enterprises + Value of Public Sector's Common Services


    • NNP = Net Indirect Taxes (By considering market prices) but since this does not give us a relation between NNP and NNI,we have to obtain it by establishing the following connection.


    NNP at Market Prices Less Net Indirect Taxes = NNP at Factor Costs = NNI

    NNP = GNP - Depreciation 

    • NGNP = If current prices are used for valuation of GDP,we get NGNP or GNP at current prices.


    • RGNP = There are two methods of calculation of RGNP.In the first method,we have to consider a particular year to be the base year and then calculate the values of production in different years.The figures obtained are known as GNP at constant price or Real GNP.
    Secondly, RGNP = NGNP/Price Index number of Current year with respect to base year

    • Per Capita Real Gross National product = RGNP of the country during the particular year/Population of the country during the mid-point of the year




  • Per Capita Nominal Gross National product = NGNP of the country during the particular year/Population of the country during the mid-point of the year


  • Gross National Expediture (GNE)

    • GNE = Consumption Expenditure + Investment Expenditure + Public Sector's Expenditure on Common Services 

    Gross National Income (GNI)

    • GNI = (Wage Bill of Private Sector + Wage Bill of Public Sector) + (Rents paid by Private Sector + Rents Paid by Public Sector) + (Gross Profit of Private Enterprises + Gross Profit of Public Enterprises)


    Market Price

    • Market Price = Factor Costs + Indirect Taxes - Subsidies 

    = Factor Costs + Net Indirect Tax

    Personal Income

    • Personal Income = National Income +Transfer Receipts 

    Personal Disposable Income
    • Personal Disposable Income = Personal Income - Direct Taxes

    National Income +Transfer Receipts - Direct Taxes

    Real Income (For calculation of Deflation)
    • Real Income = National Income at Current Price/Price Level 

    Per Capita Income

    • Per Capita Income = National Income/Total Population


    Rate of Inflation

    • {(Price in the current year - Price in the base year)/Price in the current year x 100}%
    Rate of Unemployment 

    • {(Supply - Demand)/Supply x 100}%




    Book/Knowledge Material Credit : 'Higher Secondary Economics Class XI by Jaydeb Sarkhel' Printed by Orient Blackswan on behalf of West Bengal Council of Higher Secondary Education (WBCHSE).


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