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(a) (b) (c) Succinctly explain the methods of computing national income of a country citing the necessary adjustments to be taken in each case.

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(a) (b) (c) Succinctly explain the methods of computing national income of a country citing the necessary adjustments to be taken in each case. (15 marks) What is the difference between gross domestic products and gross national product? Which one is greater in the case of a developing economy like Kenya and Why? (4 marks) Given a simple Keynesian model of national income (Y=C+I) Where: C= 1000 +0.8Y I = 500 AI= 100 (i) Calculate equilibrium income before change in investment. (2marks) (ii) Calculate equilibrium income and consumption after change in investment. (2marks) (iii) Calculate and interpret investment multiplier. (2marks)

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a The methods of computing national income of a country include 1 Production or Output Method This method calculates national income by summing up the value of all goods and services produced within t... blur-text-image

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