Long Questions
Question 1
(a) Explain what is meant by the circular flow of income.
(b) Using diagrams to illustrate your answers, explain the conditions necessary for the circular flow of income of a country to be in equilibrium.
Question 2
(a) Describe the methods by which Gross Domestic Product can be measured.
(b) To what extent can Gross Domestic Product be used as a reliable indicator of living standards, both nationally and internationally?