1. The broad objective of macroeconomic policies is to maximize the level of national income and providing economic growth to raise the utility and standards of living of participants in the economy.

Identify three secondary macroeconomic objectives that have a more direct bearing on accelerating economic growth.

Mention three ways by which national income accounting is significant.

1. What four items are excluded in the GDP accounting?

What are the major items on the income side of the GDP?

1. Suppose that in 2014 total output in a single-product economy for country X was 7 million bales of tobacco priced at $115 per bale. Also suppose that in 2016 the price per bale of tobacco was $140 and that 22 million bales of tobacco were purchased.
2. (i) Using 2014 as base year, determine the implicit real GDP price deflators for the two years

(ii) If the population of country X above was 13.5 million in 2014 and 15.7 million in 2016, what was the per capita real GDP growth rate by 2016?

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