FRQ # 3 Assume an open economy with a public sector. A. Identify two methods of calculating gross domestic product for this economy. B. Explain why the two methods you identified in part (a) must yield the same value of gross domestic product C. Identify one shortcoming of using gross domestic product as an indicator of the actual level of national output. D. If nominal gross domestic product increased by 4 percent in 1996, identify two additional pieces of information you need before you can conclude that the living standard of the typical person increased by 4 percent during that year