GDP, GNP, NNP Concepts — Mains Questions

Critically analyze the limitations of Gross Domestic Product (GDP) as a measure of economic welfare and suggest alternative indicators that provide a more holistic view of development. (250 words, 15 marks)

Explain the relationship between GDP, GNP, and NNP. Illustrate with a hypothetical numerical example how these aggregates are derived from one another, highlighting the role of Net Factor Income from Abroad (NFIA) and depreciation. (250 words, 15 marks)

Discuss the significance of distinguishing between nominal and real GDP in assessing a country's economic performance. How does the GDP deflator aid in this distinction, and what are its advantages over other price indices? (250 words, 15 marks)