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6 marksNational Income Accounting

CAPE Economics Unit 2 · 2008 · Paper 2 · Question 1(a)

Section I consists of questions on macroeconomic aggregates and models. Candidates answer one question.

Explain the difference between real Gross Domestic Product (GDP) and nominal GDP.

The mark scheme is shown once you've answered.

Practise this question

Other parts of this question

  1. 1(b)Discuss TWO methods of measuring national product.[20 marks]
  2. 1(c)(i)Identify the type of approach used in the provided diagram.[3 marks]
  3. 1(c)(ii)What type of gap exists in the economy shown in the diagram?[3 marks]
  4. 1(c)(iii)How wide is the gap?[2 marks]
  5. 1(c)(iv)How can the gap be closed?[6 marks]
  6. 1(d)Calculate equilibrium aggregate income (Y) given: Consumption = .8Y, Investment = 100, Government spending = 80, Exports = 500, Imports = 180.[10 marks]

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