Subject : Macroeconomics

Question 1 Suppose an economy consists of only two types of products: laptops and automobiles. Sales and price data for these two products for two different years are shown below: sold sold RM sold La-to- Calculate: 80,000 a) Nominal Gross Domestic Product (GDP) in 2019 and 2021. (4 Marks) b) Real Gross Domestic Product (GDP) in 2019 and 2021 using 2015 as base year. (4 Marks) 0) Based on your answers to questions (a) ancI (b), which one of them accurately measures the growth of GDP and why? (2 Marks) d} Higher GDP is indicated higher income per capital, higher economic growth and increases in distribution of income but GDP does not reect everything going well the economy. Explain FOUR (4) the limitation in GDP measure with examples. (10 Marks)