3 Questions
Which of the following is a component of national income?
Gross Domestic Product (GDP)
What is the formula to calculate Gross Domestic Product (GDP)?
GDP = Consumption + Investment + Government Spending + Exports - Imports
Which of the following is a measure of the average price level of goods and services in an economy?
Consumer Price Index (CPI)
Study Notes
Components of National Income
- National income includes compensation of employees, operating surplus, and mixed income.
Calculating Gross Domestic Product (GDP)
- The formula to calculate GDP is: GDP = Consumer Expenditure + Investment + Government Expenditure + (Exports - Imports)
Measure of Average Price Level
- Inflation rate or Consumer Price Index (CPI) is a measure of the average price level of goods and services in an economy.
Test your knowledge on national income and related aggregate concepts with this quiz! Explore components of national income, learn the formula to calculate Gross Domestic Product (GDP), and discover a measure of the average price level in an economy. Challenge yourself and enhance your understanding of these important economic concepts.
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