MACRO ECONOMICS: Questions 'bout GNP, Inflation, Trade Policies etc.?

Question

1) what are the components of GNP?
2) Approaches to GNP (with formulas)
3)Effects of inflation
4)Strategies to curb inflation
5)Trade policies= a) Inward looking policy and b) outward looking policy
6)Definition of Economic development

thanks!!! salamat po!

Answer 1

1. GNP stands for Gross National Product - means production only by people of that nation. Foreigners' output are not accounted. This means if you're from the US, the US GNP includes all Americans' output production regardless of where they live or reside. Even an American living in China will still be included in US GNP.
2. Forgotten.
3. Buying power decreases, prices more expensive, due to excessive market spending and industrial production.
4. Higher interest rates so that people will save rather than spend their money.
5. Don't know what you talk about. But I think it'll be all about sustainable economic development where subsidies are given to support small & medium industries so they become competitive (inward) and the trading be fair without deficit between nations(outward).
6. Forgotten the definition. I guess it'll be to improve the economic status of that nation including people's income, increased buying power, minimal inflation rate, healthy saving and spending, sustainable production (not overproduction), etc.

Hope these help a bit.

Answer 2

I'm not going to do your homework for you, but GNP (Gross National Product) is a measure of a country's value of goods and services.

It's made up of several things, biggest of which is consumer spending. But it also includes governmental spending, business investment, and imports and exports.