Explain how higher saving leads to a higher stander of living. What might deter a policy maker from trying to raise the rate of saving?

Ques.No-1. List the four components of GDP in detail with example. Discuss real GDP & Nominal GDP, which one is better for measuring economic well-being? Why?

Ques.No-2. (a). Explain what the consumer price index measure and how it is constructed .Identify one reason why the CPI is an important measure of the cost of living.

(b). Explain how higher saving leads to a higher stander of living. What might deter a policy maker from trying to raise the rate of saving?

List the four components of GDP in detail with example


 

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