Q1. The formula for calculating National Income is given in Slide 15. There are 5 items in the formula. Explain each item in detail (you may use examples if you like)

Q2. The formula for calculating GDP using the Income Approach is given in Slide 16. There are 6 items in the formula. Explain the meaning of each item and why each of these items are required for GDP calculation.

National Income = Compensation of employees + Proprietors' income Slide - 15 + Corporate profits + Rental income + Net interestGDP = National income - Income earned from the rest of the world + Income earned by the rest of the world + Indirect business taxes + Capital consumption allowance Slide - 16 + Statical discrepancy