Exports are not included in GDP as they are produced domestically but sold to foreign consumers.

GNP includes income earned by domestic residents abroad, while GDP only includes income generated within the domestic borders.

The circular flow of income shows how households and firms interact in the economy, with households providing labor and firms providing goods and services.

Households engage in all of these activities in the circular flow of income.

Firms engage in all of these activities in the circular flow of income.

Transfer payments, such as social security benefits, are not included in GDP as they do not represent the production of new goods or services.

GDP measures the total value of final goods and services produced within a country's borders.

National Income includes all of these components.

NDP is calculated by deducting consumption of fixed capital from GDP.

Interest rates are a determinant of aggregate supply, not aggregate demand.

An increase in aggregate demand will lead to both higher output and higher prices in the short run.

There is a negative relationship between GDP and the unemployment rate, known as Okun's Law.

Wages are a determinant of aggregate supply, not a component of it.

An increase in aggregate supply will lead to lower prices in the short run.

In the long run, there is an inverted U-shaped relationship between GDP and the unemployment rate, known as the Phillips Curve.