Differentiate between:

1.Leakage from and injection in an economy using examples.

2.Nominal income vs. Real income and how to calculate real income using CPI index.

3.Inflation vs deflation.

4.Difference between GDP deflator, Nominal GDP, Real GDP and Potential GDP.

5.Nominal interest rates are different from real interest.

6.Cyclical unemployment' and Structural unemployment.

7.Theory of comparative advantage and theory of absolute advantage using numbers.

8.Tariff barriers and non-tariff barriers.

9.Tariff and quota

10.Current account deficit vs. surplus using calculations.

11.Trade in balance and current account balance using calculations.

12.Direct investments and Portfolio investment.

13.Nominal exchange rate and the real exchange rate.

14.Fixed exchange rate and floating exchange rate system.