Question

Answer the following questions in brief. Please keep your answers short and include only relevant information. 5.1 Show log log i- How is this approximation sefu for economics? Why do economists plot graphs with log on the vertical axis? 5.2 What is the difference between GDP and GNP? 5.3 Is change in nominal GDP a good reflection of the change of a country's production capac- ǐ.y? Why or why t'ol? 5.4 Consider the identity S - I+ CA where S is national saving, I is investment, CA is the current account surplus. Explain what the identity means. What are the two ways for a country to accumulate wealth implied by the above identity?

Answer 1

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