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a) Purchase of shares of X. Ltd. by an investor in the National Stock Exchange. 

Monjur Alahi

Giving valid reasons explain which of the following will not be included in estimation of National Income of India?

a) Purchase of shares of X. Ltd. by an investor in the National Stock Exchange. 

b) Compensation paid by the Government of India to the victims of floods. 

Or

Estimate the value of Nominal Gross Domestic Product for a hypothetical economy, the value of Real Gross Domestic Product and Price Index are given as ₹500 crores and 125 respectively.


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Salim Ahmed Kawsar

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Following will not be included in estimation of National Income of India: 

a. As such transactions are mere paper claims and do not lead to any value addition. 

b. Compensation paid by the Government of India is mere transfer payment and does not lead to any flow of goods and services in an economy. 

Or 

Nominal GDP = Real GDP× \(\frac{price \, index}{100}\)

= 500× \(\frac{125}{100}\)

 =₹ 625 crores

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