Q1. Illustrate the difference between the GDP and GNP? Describe which one is better measure of the income? describe why?
Q2. What do you mean by GDP deflator and how does it distinct from the consumer price index?
Q3. Describe the three approaches of measuring the national income? Illustrate that such three approaches give matching result.
Q4. Define the term private saving. describe how is the private saving employed in the economy? Describe the relationship between the private and national saving.
Q5. Describe critically GDP as a measure of the economic welfare.
Q6. Deduce saving- investment recognize in the context of the open economy.
Q7. From national income accounting illustrate that a raise in taxes (while transfer unchanged) should imply a change in total exports, government purchases or the saving investment balance.