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Macroeconomics (BAFB1033) CONFIDENTIAL September 2021 Final Examination Question 3 Table 1 below shows the types of expenditure of Country A at the current US dollar. Table 1 Item Value (USD) Final consumption expenditure 248,885,405,399 Household consumption expenditure (including non-profit institutions 206,024,086,401 serving households) General government final consumption expenditure 42,861,318,997 Gross capital formation 85,762,041,928 Gross fixed capital formation (including acquisitions less disposals of 86,834,374,134 valuables Changes in inventories -1,072,332,206 Exports of goods and services 245,967,537,724 Imports of goods and services 221,902,384,702 Based on the above table answer the following questions and show your workings. a) Calculate the Gross Domestic Product (GDP) using the expenditure approach.(4 Marks) b) Do higher incomes and more output always equal a higher quality of life for the people experiencing such growth? Explain. (4 Marks) c) Why GDP fails as a measure of well-being/quality of life? (2 Marks) (Total: 10 Marks)