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Q1. describe why the national income is measured at factory prices and not at the market prices?

Q2. Define the term GDP deflator as a measure of the inflation.

Q3. Describe why we can’t compute the national product simply by adding the production of all the firms.

Q4. describe why the economists use real GDP instead of nominal GDP to gauge economic well-being?

Q5. Describe why do you think household’s purchase of new housing is comprised in the investment components of GDP instead of the consumption component?

Q6. If price of the Navy submarine increases, is the consumer price index or the GDP deflator influenced? describe why?

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M912338

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