Given data (in million N):

$$GDP_{MP} = C + G + I + (X - M)$$ $$GDP_{MP} = 50 + 27.50 + 20.75 + (22.50 - 21.75)$$ $$GDP_{MP} = 50 + 27.50 + 20.75 + 0.75$$ $$GDP_{MP} = 99 \text{ million N}$$

$$GDP_{FC} = GDP_{MP} - \text{Taxes} + \text{Subsidies}$$ $$GDP_{FC} = 99 - 9.00 + 0.75$$ $$GDP_{FC} = 90.75 \text{ million N}$$

• GDP at market prices: $\boxed{\text{99 million N}}$
• GDP at factor cost: $\boxed{\text{90.75 million N}}$

b. GNP at market prices and factor cost

$$GNP_{MP} = GDP_{MP} + NFIA$$ $$GNP_{MP} = 99 + 20.25$$ $$GNP_{MP} = 119.25 \text{ million N}$$

$$GNP_{FC} = GDP_{FC} + NFIA$$ $$GNP_{FC} = 90.75 + 20.25$$ $$GNP_{FC} = 111 \text{ million N}$$

• GNP at market prices: $\boxed{\text{119.25 million N}}$
• GNP at factor cost: $\boxed{\text{111 million N}}$

c. NNP at market prices and factor cost

$$NNP_{MP} = GNP_{MP} - \text{Depreciation}$$ $$NNP_{MP} = 119.25 - 16.20$$ $$NNP_{MP} = 103.05 \text{ million N}$$

$$NNP_{FC} = GNP_{FC} - \text{Depreciation}$$ $$NNP_{FC} = 111 - 16.20$$ $$NNP_{FC} = 94.80 \text{ million N}$$

• NNP at market prices: $\boxed{\text{103.05 million N}}$
• NNP at factor cost: $\boxed{\text{94.80 million N}}$

d. Per capita income

$$\text{Per Capita Income} = \frac{NNP_{FC}}{\text{Total Population}}$$ $$\text{Per Capita Income} = \frac{94.80 \text{ million N}}{100 \text{ million people}}$$ $$\text{Per Capita Income} = 0.948 \text{ N per person}$$

• Per capita income: $\boxed{\text{0.948 N}}$

e. State the method used.

The primary method used for calculating GDP is the Expenditure Method. Subsequent calculations involve adjustments for net factor income from abroad, depreciation, and net indirect taxes.

• Method used: Expenditure Method

---

2. Consumption Function and Macroeconomic Aggregates

Given:

• Consumption function: $C = 500 + 0.9Y$
• Planned Investment (I) = 600

a. If national income is N3,000, calculate Consumption and Savings.

$$C = 500 + 0.9Y$$ $$C = 500 + 0.9(3000)$$ $$C = 500 + 2700$$ $$C = 3200$$

$$S = Y - C$$ $$S = 3000 - 3200$$ $$S = -200$$

• Consumption: $\boxed{\text{N3,200}}$
• Savings: $\boxed{\text{-N200}}$

b. If national income increases from N3,000 to N4,000 and consumption increases from N2,600 to N3,200, calculate:

$$\Delta Y = 4000 - 3000 = 1000$$ $$\Delta C = 3200 - 2600 = 600$$ $$MPC = \frac{\Delta C}{\Delta Y}$$ $$MPC = \frac{600}{1000}$$ $$MPC = 0.6$$

$$MPS = 1 - MPC$$ $$MPS = 1 - 0.6$$ $$MPS = 0.4$$

• Marginal Propensity to Consume (MPC): $\boxed{0.6}$
• Marginal Propensity to Save (MPS): $\boxed{0.4}$

c. Determine the break-even level of income.

$$Y = C$$ $$Y = 500 + 0.9Y$$ $$Y - 0.9Y = 500$$ $$0.1Y = 500$$ $$Y = \frac{500}{0.1}$$ $$Y = 5000$$

• Break-even level of income: $\boxed{\text{N5,000}}$

d. Determine the equilibrium level of national income in the economy.

$$Y = C + I$$ $$Y = (500 + 0.9Y) + 600$$ $$Y = 1100 + 0.9Y$$ $$Y - 0.9Y = 1100$$ $$0.1Y = 1100$$ $$Y = \frac{1100}{0.1}$$ $$Y = 11000$$

• Equilibrium level of national income: $\boxed{\text{N11,000}}$