Use the following composition of expenditure for the economy of a country named the Kaya Republic, for the year ended 2019 to answer the questions below:

COMPONENT R millions

Final consumption expenditure by households 4 500

Gross capital formation by firms 3 250

Final expenditure by the general government 3 500

Exports of goods and services 900

Imports of goods and services 1 200

Depreciation 350

Income from work completed outside of Manna Republic 150

Payments made to noncitizens within the Manna Republic 250

Show all calculations and formulae.

Q.1.2.1

Calculate the value of the country's GDE (Gross Domestic

Expenditure).

(3)

Q.1.2.2

Compute the value for the country's GDP (Gross Domestic Product).

(3)

Q.1.2.3

Determine the value of the country's NNP (Net National Product).

(3)

Q.1.2.4

If it is predicted that the real GDP will increase to 11 000 in 2020, calculate the growth rate between 2019 and 2020.

(3)

Q.1.2.5

The measure of GDP for economic growth is not always perfect. Explain three problems that are associated with GDP as a measure of economic growth.

(3)