Q1 Part A) Explain three different approaches to calculate the GDP. Which approach should be used in the economy like Pakistan and Why?

Q1 Part B) An economy produces two goods: tomatoes and ketchup. It is assumed that half of the tomatoes are bought and consumed as final good; the other half is used to produce ketchup.

In 2014, 30 KGs of tomatoes are produced at Rs.60 each, and 20 KGs of ketchup are produced at Rs.200 each.

In 2015, 40 KGs of tomatoes are produced at Rs.80 each, and 30 KGs of ketchup are produced at Rs.195 each.

Find the following:

i.Assuming 2014 is the base year; calculate the real, nominal GDP and GDP deflator in 2014 and 2015.