Explain carefully the difference between GDP and GNP. Why aren’t intermediate goods counted in GDP? Explain what is meant by the concept of “value added” and how it can be used to calculate GDP.
PRINCIPLES OF MACROECONOMICS QUIZ #2 – COVERING CHAPTERS 5-7 DUE BACK ON SEPTEMBER 28TH INSTRUCTIONS: Please show your work / explain your answers or you will lose credit. Discuss what is meant by the Classical belief that the economy is self-correcting. When did this theory break apart?What might be some Keynesian prescriptions to get the […]