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TUTORIAL 2 1. Define Gross Domestic Product (GDP) and Gross National Product (GNP). 2. What is the difference between GDP and GNP? Give examples to explain. 3. Which of the following included in this year's GDP? Explain why each is included. a. Miera grows vegetables and fruits for home consumption. b. The income of a general practitioner. c. Government pays out Cost of Living Aid (COLA). d. The purchase of leather by a shoe manufacture. 4. Suppose that the information in the following table is for a simple economy that produces the following goods and services. Product Year 2017 Year 2018 Year 2019 Price Quantity Price Quantity Price Quantity (RM) (RM) (RM) A 1 180 1 200 1.25 200 B 90 75 90 100 100 120 C 0.6 675 0.5 600 0.5 630 a. Calculate nominal GDP for years 2017, 2018 and 2019. b. Calculate real GDP for year 2018 using year 2017 as a base year. What is GDP deflator? c. Calculate real GDP for year 2019 using year 2018 as a base year. What is GDP deflator? What was economic growth rate in 2019