11:25 | 0.0KB/s ©וו*הK EXERCISE Jan 14QEXERCISE Jan 14, 20211. Define gross domestic product (GDP). State the four concepts of GDP.2. 2. Which of the following are included in this year's GDP? Explain why each is included.(a) Dr Simone grows vegetables for home consumption.(b) The income of a general practitioner.(c) Government pays out BR1M.(d) The purchase of leather by a shoe manufacturer.3. What is the difference between GDP and GNP? Give examples to explain.4. Suppose that the information in the following table is for a simple economy thatproduces the following goods and services.Year 2010Year 2011Year 2012Product Price Quantity Price Quantity Price Quantity(RM)(RM)(RM)A118012001.25200B9075901001001200.66750.56000.5630(a) Calculate nominal GDP for years 2010, year 2011 and year 2012.(b) Calculate real GDP for year 2011 using year 2010 as the base year. What is theGDFdeflator?(c) Calculate real GDP for year 2011 using year 2010 as the base year. What is theGDPdeflator?Dowered by IDS OfGeDisplaydirectoryWord countMobile viewEditII

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1. Define gross domestic product (GDP). State the four concepts of GDP.

Essentials of Economics (MindTap Course List)

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ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter15: Measuring A Nation's Income

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