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o bhai solution das dio tuwadi meharbaniiiii
thora e tym reh gaia
Keeping in view the above facts and figures, analyze how would this government spending affect the income and consumption of the people of Kenya.
OTHER MEASURES OF INCOME Net National Product (NNP) It is GNP adjusted for depreciation. NNP = GNP – Depreciation National Income (NI) NI = NNP – Indirect Business Taxes Personal Income (PI) = NI – Corporate Profits – Social Insurance Contributions – Net Interest + Dividends + Govt. transfers to Individuals + Personal Interest Income Disposable Personal Income (DPI) = PI - Tax CONSUMER PRICE INDEX (CPI) CPI is a measure of the overall level of prices. It is published by the Federal Bureau of Statistics. It is used to: • Track changes in the typical household’s cost of living. • Adjust many contracts for inflation (i.e. “COLAs”: Cost of Living Adjustments). • Allow comparisons of dollar figures from different years. HOW TO CONSTRUCT THE CPI 1. Survey consumers to determine composition of the typical consumer’s “basket” of goods. 2. Every month, collect data on prices of all items in the basket; compute cost of basket 3. CPI in any month equals Cost of basket in that m onth 100 Cost of basket in base period
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