Instruction: It’s official: Budget increases will not tax recovery,

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19932 1/21/41/41/232 1/42 3/42 1/40199403632/253/43 3/419951/21/423/45 1/23 1/25 1/43 1/40What does ‘GDP at 1990 prices’ mean?What is the term used for GDP before adjustments for factor cost are made?What adjustments have to be made to convert the figures to factor cost?Why are the factor cost adjustments in the table all negative?What further adjustments would be required to obtain a figure for national income?Explain using Keynesian analysis, how tax increases could stall economic recovery.Why was it predicted that tax changes would not cause a reduction in consumer spending?Give two (2) other ways in which GDP might be measured.

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