Measuring a Nation’s Income Quiz

Describe the income approach to calculating GDP.

Describe the expenditure approach to calculating GDP.

Calculate GDP, given data on a country's expenditures or income.

Identify which component of GDP is affected in a given scenario.

Compare GDP and GNP for an economy.

Calculate GNP, given data on a country's income.

Explain the difference between real GDP versus nominal GDP.

Calculate the GDP deflator, given data on a country's real and nominal GDP.

Identify limitations of using GDP as a measure of quality of living in a given scenario.

What happens with total expenditure?

• Total expenditure rises by $50.

• Total expenditure falls by $50.

• Total expenditure remains the same.