Show all formulae and calculations where necessary. Round all answers to the nearest whole number. Explanations should be clear and concise. 6. Consider gross domestic production. 6.1. Define GDP. (1 mark) 6.2. Define GDP per capita, and explain the difference between GDP and GDP per capita. (3 marks) 7. Refer to the diagram below illustrating business cycles. OUTPUT (GDP) Actual Growth peak expansion. Growth Trend contraction trough TIME 7.1. What is a business cycle? (2 marks) 7.2. Explain, in your own words, the concepts of a trough, expansion, peak and contraction, as labelled in the diagram. In your explanation, be sure to touch on the concept of a recession. (5 marks) 8. Suppose two countries start with the same real GDP per capita, but Country A is growing at 2% per year and Country B is growing at 3% per year. After 140 years, Country B's GDP per capita will be larger than Country A's. Show all your workings. ** Hint: There is more than 1 way to calculate the answer. ** (4 marks)