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2 marksNational Income Accounting

CAPE Economics Unit 2 · 2011 · Paper 2 · Question 1(b)(iii)

A table shows the production quantities and unit prices of mangoes, coconuts, and cakes in an economy across 2008, 2009, and 2010.

State, in terms of economic growth, the difference in the economy between 2008 and 2009.

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Other parts of this question

  1. 1(a)(i)Define the term 'intermediate good'.[2 marks]
  2. 1(a)(ii)Explain why intermediate goods are excluded from the calculation of Gross Domestic Product (GDP).[1 mark]
  3. 1(a)(iii)Explain what is meant by 'value added'.[2 marks]
  4. 1(b)(i)Explain the difference between nominal GDP and real GDP.[2 marks]
  5. 1(b)(ii)Calculate the GDP for the economy for 2008 and 2009.[4 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]

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