Problem
1. Explain the difference between final goods and intermediate goods. Why is it sometimes difficult to apply this distinction in practice? In this regard, why is the concept of value added useful?
2. Explain the difference between government spending and government purchases of goods and services (G). Which is larger?
3. Explain why national income and gross domestic product would be essentially equal if there were no depreciation.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.