What is the difference between gdp and gnp

Reference no: EM133243182

Assignment:

1. In the national income accounts, what is the difference between a. a firm's buying an auto for an executive and the firm's paying the executive additional income to buy the automobile herself? b. Your hiring your spouse (who takes care of the house) rather than having him or her do the work without pay? c. Your deciding to buy an American car rather than a German car?

2. What is the difference between GDp and GNp? Is one a better measure of income/output than the other? Why?

3. The CpI and ppI are both measures of the price level. how are they different, and when might you prefer one of these measures over the other?

4. If you woke up in the morning and found that nominal GDp had doubled overnight, what statistic would you need to check before you began to celebrate? Why?

Reference no: EM133243182

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