Ques. 1

A. Explain the difference between:

i. the output and income methods of calculating GDP

ii. nominal GDP and real GDP

iii. GDP and GNP

B. Comment on THREE (3) types of information that national income statistics provide.

Ques 2

A. With the aid of diagrams, distinguish between cost-push and demand-pull inflation. (6 marks)

B. How can a government use fiscal policy to control rising inflation rates? (6 marks)

C. Explain FOUR (4) costs of inflation to the Jamaican economy.