What is National Income and how is it linked to NDP

Week 10 – National Income Accounting

Part a

1. What is the definition of Gross Domestic Product (GDP)? Explain each part of the definition.

(a) What is value-added? How is it linked to GDP?

(b) How else can we measure the GDP? Give both the income approach and expenditure approach. Explain each part of each approach.

(c) What is GNP and how is it linked to GDP?

(d) What is NDP and how is it linked to GDP?

(e) What is National Income and how is it linked to NDP?

(f) Find out the U.S. GDP (in current dollars) for 1986-2016 and plot them into a graph.

(g) What is real GDP? How is it measured? Find out the U.S. Real GDP for 1978-2017 and plot them into the same graph.

(h) What is the GDP deflator? Why is it important?

(i) What is the difference between the growth rate of nominal GDP, the growth rate of real GDP and the growth rate of real GDP per capita? What are the determinants of the last one? Find out the growth rate of U.S. Real GDP per capita for 1978-2017 and plot them into a graph.

2. What is inflation?

(a) Give three different ways to measure it.

(b) Find out the U.S. rates of inflation for 1979-2018 and plot them into a graph.

(c) What is the difference between cost-push and demand-pull inflation?

Part b

3. What is the definition of an “unemployed”person according to the U.S. Bureau of Labor Statistics?

(a) Find out the U.S. rates of unemployment for 1979-2018 and plot them into a graph.

(b) “The unemployment rate has gone down, which means the economy is doing really well.”True or false? Explain.

(c) What are the three types of unemployment? Explain each one.

(d) What is the natural rate of unemployment?

4. What is consumption function and saving function? What is marginal propensity to consume (mpc)?

(a) How is saving related to mpc? Is saving related to the real interest rate (r)?

(b) Why is investment negatively related to r?

5. What is money?

(a) Which broad categories can we devide its uses into?

(b) How are bond prices related to the real rate of interest r? Explain with an example.

(c) How is the demand for money (or real balance of money) related to the real rate of interest r and real GDP Y ? Why?

(d) What are M1 and M2 money stock?

(e) Is credit card counted as money? Why?

(f) How do commercial banks create money? Explain with an example. What is the money multiplier?

(g) Who controls the money supply? What are the tools? How do the tools change the money supply?

Are you looking for a similar paper or any other quality academic essay? Then look no further. Our research paper writing service is what you require. Our team of experienced writers is on standby to deliver to you an original paper as per your specified instructions with zero plagiarism guaranteed. This is the perfect way you can prepare your own unique academic paper and score the grades you deserve.

Use the order calculator below and get ordering with idealtermpapers.com now! Contact our live support team for any assistance or inquiry.

Type of paper Academic level Subject area
Number of pages Paper urgency Cost per page:

Purchase Guarantee

Why ORDER at IdealTermPapers.com?

  • Educated and experienced writers.
  • Quality, Professionalism and experience.
  • Original Content writing.
  • Best customer support.
  • Affordable Pricing on orders.
  • Thorough research.
  • Ontime delivery of finished work.
  • 100% plagiarism free papers.

Reasonable Prices

  • To get the best quality papers isn’t cheap so don’t trust extremely low prices.
  • We can’t claim that we have unreasonably low prices because low prices equal to low quality.
  • Our prices are good and they balance with the quality of our work.
  • We have a Moneyback guarantee.

Original and Quality work

  • Our writers are professionals and they write your paper from scratch and we don’t encourage copy pasting.
  • All writers are assessed and they have to pass our standards for them to work with us.
  • Plagiarism is an offence and it’s never tolerated in our company.

Native Writers plus Researchers

  • Our writers are qualified and excellent and will guarantee the best performance in your order.
  • Our team has writers who have master's and PhD qualifications who can handle any assignment
  • We have the best standards in essay writing.

We have been in business for over 7 syears

  • We have always served our customers from all over the world and they have continued to order with us.
  • We value our customers since they have trusted us to do their assignments.
  • We are competent in our writing gained from experience over the years
  • Our company has 24/7 Live Support.

You will get

  •  Custom Admission Essay written by competent professional English writers.
  •  Free revisions according to our revision policy if required
  •  Paper format:  275 words per page, Times New Roman font and size 12, doublespaced text and1 inch margin
  •  On time delivery and direct order download
  •  Privacy guaranteed

We can help you:

  •  acquire a comprehensive professional presentation.
  •  get a unique and remarkable content as per your instructions.
  •  Get an additional portion that can be included to your existing presentation;
  •  turn your work in to an eyecatching presentation with well communicated ideas.
  •  improve your presentation to acquire the best professional standards.