Quelpr
1 markNational Income Accounting

CAPE Economics Unit 2 · 2011 · Paper 2 · Question 1(a)(ii)

Explain why intermediate goods are excluded from the calculation of Gross Domestic Product (GDP).

The mark scheme is shown once you've answered.

Practise this question

Other parts of this question

  1. 1(a)(i)Define the term 'intermediate good'.[2 marks]
  2. 1(a)(iii)Explain what is meant by 'value added'.[2 marks]
  3. 1(b)(i)Explain the difference between nominal GDP and real GDP.[2 marks]
  4. 1(b)(ii)Calculate the GDP for the economy for 2008 and 2009.[4 marks]
  5. 1(b)(iii)State, in terms of economic growth, the difference in the economy between 2008 and 2009.[2 marks]
  6. 1(b)(iv)State, in terms of economic growth, the difference in the economy between 2008 and 2010.[2 marks]
  7. 1(c)Using a standard 45° Keynesian cross diagram, explain how equilibrium is reached between actual expenditure (AE) and income (Y).[10 marks]

More practice: the rest of this paper · more National Income Accounting questions · all CAPE Economics Unit 2 past papers