2.3 - SOME MACROECONOMIC IDENTITIES
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Practice Questions
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Define GDP.
💡 Hint: Focus on the total production aspect.
What does GNP account for?
💡 Hint: Think of citizens earning money in other countries.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What does GDP stand for?
💡 Hint: Remember the geographic focus of GDP.
True or False: GNP only accounts for domestic production.
💡 Hint: Think about citizens earning abroad.
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Challenge Problems
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If a country has a GDP of Rs 2,000 crores, receives Rs 300 crores as income from abroad, and pays Rs 200 crores to foreigners working in the country, calculate its GNP.
💡 Hint: Use the GNP formula and take care of the inflows and outflows.
Consider a scenario where GNP is Rs 1,500 crores and depreciation is assessed at Rs 100 crores. Calculate the NNP and discuss what this reveals about capital consumption.
💡 Hint: Think about how much of the produced goods need to be sustained for future use.
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