a) Discuss the different approaches used in the measurement of the National
Income of a country.

(6 marks)
b) The Economic Advisory Department of Examland has estimated that its
country‟s marginal propensity to consume equals 0.6, investment in millions of
shillings equals 2,000, Government spending 8,000, autonomous consumption
10,000 and net exports 1,000.
Required:
1. Calculate the level of equilibrium of National Income for this economy.
(5 marks)
2. If the currency of Examland depreciated, what would likely happen to the
National Income? Why?
(3 marks)
c) What are the main problems associated with National Income Accounting in
developing countries?
(6 marks)