Question 1 Given the following data for a country A for the year ended December 2021 Items Private expenditure Government expenditure Gross private investment Gross government investment Increase in stock Net Export Wage and salaries Interest, rent and dividend Net factor income from abroad Depreciation RM Million 5000 4400 1000 1200 300 1100 4000 2000 140 380 Indirect taxes 1700 Subsidies 1600 Calculate: a) GDP at market price b) GDP at factor cost

Would you expect capital deepening to result in diminished1etmns? Why or why not? Would you expect improvements in technology to result in diminished returns? Why or why not?

What are the main components of measuring GDP with what is demanded?

What are typical GDP patterns for a high-income economy like the United States in the long run and the short run?

In its recent report, The Conference Boards Global Economic Outlook 2015, updated November 2014 (http://www.conference-board.org/data/ globaloutlook.cfm), projects Chinas growth between 2015 and 2019 to be about 5.5%. International Business Times (http//www.ibtimes.com/us-exports-china-have rown-294-over-past-decade- 1338693) reports that China is the United States third largest export market, with exports to China growing 294 over the last ten years. Explain what impact China has on the U.S. economy.

What is deflation?

In 1980, Denmark had a GDP of 70 billion (measured in U.S. dollars} and a population of 5.1 million. In 2000, Denmark had 3 GDP of 160 billion (measured in U.S. dollars} and a population of 5.3 million. By what percentage did Denmarks GDP per capita rise between 1980 and 2000?

What do economists mean when they refer to improvements in technology?

For a high-income economy like the United States, what aggregate production function elements are most important in bringing about growth in GDP per capita? What about a middle-income country such as Brazil? A low-income country such as Niger?

Refer back to the Work It Out about Comparing the Economies of Two Countries and examine the data for the two countries you chose. How are they similar? How are they different?