Work sheet

Q1 – Complete the following statement

1. GDP per capita is the real GDP on a per-person basis, it’s usually calculated using the following formula: GDP = Real GDP divided by

Q2 – Compare and contrast savings and disposable personal income:

Q3 – Nominal GDP does not account for the change in prices of goods and services. Will the output be affected? Explain:

Q4 – Correct the following statement:

1. GDP and GNP are always equal, one cannot be higher or lower than the other

Challenge:

GDP is the total dollar value of all final products in a country’s border in a given year. There are many factors that affect the changes in GDP, such as environmental and political factors. Demand and supply also affect GDP, but in what way does demand and supply affect GDP? Explain: