The following are the data for country A for a period of two years 2014 and 2015. Between
2014 and 2015, price increases by 15%, National income in 2014 was N$500 million and in 2015
was N$650 million, the population in 2014 was 2.3 million and in 2015 is 2.4 million.
a) Explain two ways of identifying equilibrium national income under Keynesian theory of
employment [5 marks]
b) Use the information provided to calculate the real output per capita for 2014 and 2015,
using 2014 as base year. [5 marks]
c) How much of the increase in national income is due to increase in output and how much is
due to increases in general prices. Express your answer in percentag