I. Explain the following identity,How is this identity be used to measure GDP in Pakistan? C + G + I + NX ≡ Y ≡ YD + (TA − TR) ≡ C + S + (TA − TR). II. What are the disadvantages of using the above identity to measure economic development Please answer whole question. Thank you

I. Explain the following identity,How is this identity be used to measure GDP in Pakistan? C + G + I + NX ≡ Y ≡ YD + (TA − TR) ≡ C + S + (TA − TR). II. What are the disadvantages of using the above identity to measure economic development Please answer whole question. Thank you

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter17: Growth And Less Developed Countries

Section: Chapter Questions

Problem 2SQP

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Concept explainers

Economic Growth

It means the rise in the manufacturing levels of a country’s products/services over a while. It is calculated in terms of the real income of the people of the country. When the production of products/services begins, the manufacturers will hire employees, which in turn raises the income of the people and it will also raise the buying power, this eventually leads to the circulation of money that directly helps in the increase in the Gross Domestic Product (GDP). Thus, GDP is calculated by economists to calculate the growth in the country.

Question

I. Explain the following identity,How is this identity be used to measure GDP in Pakistan?

C + G + I + NX ≡ Y ≡ YD + (TA − TR) ≡ C + S + (TA − TR).

II. What are the disadvantages of using the above identity to measure economic development

Please answer whole question. Thank you

Definition Video Definition Overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period. Video

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