Explain two of the shortcomings of GDP. Describe how the Genuine Progress Indicator tries to improve on the shortcomings you chose. What does the GDP indicate about an economy? Can a GDP be manipulated and thus provide inaccurate information about a country's economic production?
What components of GDP tend to decline significantly during recessions (particularly during the 2008 recession), and what GDP components rise during expansion? What is GDP deflator, and how does its unit show deflation? What does the GDP indicate about an e...
What is GDP Per Capita? What does GDP per capita tell us? Is it always a good thing when GDP goes up? Explain. What is (define) GDP Per Capita? How is GDP Per Capita calculated? Which items directly add to GDP? Define real-per-capita GDP and explain what it is used for. GDP is...
GDP is analyzed asreal GDPornominal GDP. A country's real GDP is the economic output with inflation factored in, while nominal GDP does not account for inflation. When the GDP rises, it means the economy is growing. Conversely, if it drops, the economy is shrinking. If the economy grows...
Macroeconomic output is typically measured by GDP or one of the other economy-wide accounts. Macroeconomists who are interested in long-term increases in output study GDP growth. Over time, economic output increases because of the accumulation of machinery and other capital, advances in technology,...
a recessionary gap can remain stable, suggesting short-term economicequilibriumbelow the ideal, which can be as damaging to an economy as an unstable period. This instability is because prolonged downward periods of lower GDP production inhibit growth and contribute to sustained higherunemploymentlevels...
The deVere CEO cites three major reasons that indicate the economic trajectory might not be as rosy in the near future. "First, the bond market is sending red-flag signals that it believes a recession is looming. For more than a year now, we've seen an inverted yield curve, which is ...
Generally, moderate inflation has a stimulating effect on the economy, but if inflation is too high, it can affect economic stability and residents' living standards. When the inflation rate is below the target level and shows a continuous downward trend, it may indicate insufficient economic grow...
Is it the average amount a person earns each year that lives in that country? Does it take into the cost of living in each country? What does an annual GDP growth rate of 3.9% say about the country's economy? Below is a table of GDP and population for several imaginary countries. Wha...
If in some year nominal GDP was $2,000 billion and the GDP deflator was 250, what was real GDP? a.) $5,000 billion b.) $2,250 billion c.) $1,000 billion d.) $ 800 billion What is the difference between real GDP and nominal GDP? Does GDP accurately reflect our ...