Tool 1: The Golden Conversion Rules
National Income Aggregate Solver (GDP → NNP)
Convert between any aggregate: Gross/Net, Domestic/National, Market Price/Factor Cost.
Formula: NNP_FC = GDP_MP - Dep + NFIA - NIT
Can be negative if factor payments to abroad exceed receipts.
CBSE BOARD EXAM WORKING:
National Income (NNP_FC)
Step 1: Net Domestic Product at MP (NDP_MP) = GDP_MP - Depreciation
Step 2: Net National Product at MP (NNP_MP) = NDP_MP + NFIA
Step 3: Net National Product at FC (NNP_FC) = NNP_MP - NIT
Final National Income (NNP_FC):
₹ 7,600 Crores
Tool 2: Keynesian Multiplier Engine
Investment Multiplier (k) & Equilibrium Income Solver
Compute Multiplier (k), change in National Income (ΔY), and Induced Consumption.
Formula: k = 1 / (1 - MPC) = 1 / MPS = ΔY / ΔI
Marginal Propensity to Consume (MPC):
0.80
0 (MPS = 1, k = 1)
1 (MPS = 0, k = ∞)
💡 Evaluator Tip: If MPC rises, the value of the multiplier (k) increases directly because an initial injection of investment triggers a larger chain of induced consumption expenditure.
STEP-BY-STEP KEYNESIAN WORKING:
MPS = 1 - MPC = 1 - 0.80 = 0.20
Multiplier (k) = 1 / MPS = 1 / 0.20 = 5.0
Total Change in Income (ΔY) = k × ΔI = 5.0 × 500 = ₹ 2,500 Crores
Change in Consumption (ΔC) = MPC × ΔY = 0.80 × 2,500 = ₹ 2,000 Crores
Multiplier Value (k):
5.0x
Total Income Generated:
₹ 2,500 Cr
Tool 3: Inflation & Price Index
GDP Deflator & Real GDP Calculator
Calculate how much of economic growth is real output vs. pure price inflation.
GDP Deflator = (Nominal GDP / Real GDP) × 100
DEFLATOR & INFLATION WORKING:
GDP Deflator = (6600 / 5000) × 100 = 132.0
Price Level Rise since Base Year = 132.0 - 100 = 32.0% Inflation
GDP Deflator Index:
132.0
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