Homework Answers
Solution(s):
Real GDP is 1 unit of goods which is produced by product method. By expenditure method=0.5+0.5=1 unit GDP includes goods produced
B 1/2=0.5.per capita means per individual. There are two people and output is 1.Real gdp=output/population
C Aggregate GDP remains same. Consumption is equal to invest in national income accounting. Alternatively saving comes from income. And by income method gdp remains 1.
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