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What is the Formula of GDPmp and GDPfc?

Here we will learn about the formula of GDPmp and GDPfc. Tap to know more about such interesting topics.

Answer: GDPfc stands for Gross Domestic Product at Factor Cost.

GDP means that the value of production is computed by multiplying the price purchasers pay rather than the price producing units get.

GDP at factor cost (GDPFC) and GDP at market prices (GDPMP) have the following equations:

GDPMP = C, I, G, and X-M

C stands for consumption expenditure, and

I stand for financial investment.

The government’s consumption and investment expenditure are denoted by the letter G.

M is imported, while X is exported.

GDPMP – NIT = GDPFC (where NIT stands for net indirect taxes).