Although GDP has been a best measure of national income accounting, but it has several shortcomings as a measure of both total output and well-being. Discuss any FOUR (4) points related to this problem.

Q: The GDP deflator measures A .the changes in aggregate prices of all final goods and services…

A: GDP deflator: - it is a measure of the change in the price of goods and services produced in an…

Q: GDP is a very important measure of economic performance. It is also used to measure standard of…

A: Expansions in Product Quality    As technology propels, makers can offer progressively better items…

Q: Approaches in relation to national income accounting?

A: National income measures the market value of goods and services produced in an economy in particular…

Q: Differentiate between GNP and GDP.Also Find out GNP at factor cost of the given data.The net…

A: The value of products and services generated inside a country's boundaries, by residents and…

Q: The Income Approach calculates GDP with all of the following except: wages, interest, profits and…

A: The market value of all final goods and services produced in the economic territory of the country…

Q: Gross National Product (GNP) and Gross Domestic Product (GDP) are used interchangeably to mean the…

A: Gross domestic product refers to the total monetary value of all the final good and services…

Q: If Gdp deflator is equal  at 90   it means that  :  1- stagflation  2- deflation  3- inflation…

A: The GDP deflator measures the changes in prices for all of the goods and services produced in an…

Q: The gross domestic product (GDP) of the United States is defined as the in a given period of time.…

A: Gross Domestic Product: It refers to the final value of all the goods and services manufactured in…

Q: To avoid the "double counting" problem, GDP O excludes the value of financial assets sold. O takes…

A: Gross domestic product (GDP): - GDP is the market value of all final goods and services produced in…

Q: Explain three shortcomings of using GDP to measure the size of the economy.

A: GDP: It is used to measure economic well-being.

Q: Real GDP is a useful measurement because: it helps us to track actual variations in economic…

A: The GDP is a measure of output which takes into account the final value of the production of the…

Q: The GDP deflator is: also known as the wholesale price index. equal to 100 in the base year. the…

A: GDP price deflator helps economists compare the levels of real economic activity from one year to…

Q: Along with government spending, what THREE factors make up gross domestic product (GDP) under the…

A: GDP = Household spending + Gross investment + Government spending + Net exports

Q: From the data given below, calculate GDP and consumption of fixed capital. Define GDP. Gross…

A: Here we calculate the GDP and consumption of fixed capital by using the given information , so the…

Q: Saved Intermediate goods, which are goods that go into the production of other goods, are directly…

A: Answer to the question is as follows:

Q: Discuss two uses of National Income Statistics.

A: The national income statistics is used by a country to gather data and aggregate economic activity…

Q: Define gross domestic product GDP in depth, all the points needed to know when understanding what…

A: GDP is the measure of the total value of services and goods produced within an economy during a…

Q: The gross domestic product (GDP) of the United States is defined as the all in a given period of…

A: GDP stands for Gross domestic product. In this case US GDP is being discussed and we are required to…

Q: Suppose the total market value of all final goods and services produced in a particular country in…

A: Gross Domestic Product(GDP) is defined as the value of all goods and services produced in an economy…

Q: What is double counting and why must be avoided when measuring GDP? How do statisticians avoid the…

A: Double counting:- It refers to counting the value of one good or service more than once.  For…

Q: Units of Price Per Year Output Unit 1 3 $ 3 2 4 4 6. 5 4 7 7 8 8 Assume an economy that makes only…

A: Real GDP is an expansion changed measure that mirrors the amount of labor and products created by an…

Q: Comment on the limitations of using GDP as a way of measuring economic well-being

A: Introduction (GDP)Gross domestic product is a monetary measure of the market value of all final…

Q: The following data represents the national income account for a country for 2017. All figures are in…

A: Gross domestic product at market price- Market value of final goods and services produced within the…

Q: Refer to the accompanying national Income data for the economy. All figures are in billions of…

A: Gross Domestic Product is defined as the final value of all goods and services produced in an…

Q: If Gdp deflator is equal at 120   it means that  :  1- stagflation  2- deflation  3- inflation…

A: The GDP price deflator measure the changes in prices by comparing nominal GDP to real GDP.

Q: Intermediate goods are excluded from the GDP calculation to avoid double counting. Select one: a.…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: The table below shows the national income data of a country with a population of 40 million. Using…

A: Gross domestic product is the value of all final goods and services produced in an economy over a…

Q: GDP deflator

A: The value of all the goods and services are accounted within a year depicts the GDP (Gross Domestic…

Q: If a real estate agent sells a house for 364,217 dollars that the previous owners had bought 13…

A: GDP (Gross domestic product) refers to the total value of finished goods and services that produces…

Q: While Gross Domestic Product (GDP) is generally a good indicator of a country’s economic…

A: Gross domestic product refers to the criteria through which economic development of a country is…

Q: GDP is very widely used throughout the world as a measure of Economic health. Come up with your own…

A: GDP is the sum of value of goods and services produced in a nation in a particular period.

Q: b) Which of the following statements is incorrect sales of used cars, existing homes and other…

A: The standard measure of the value-added generated by the production of goods and services in a…

Q: Q3. Distinguish between i. GDP at factor cost and GDP at market price ii. GDP and GNP

A: GDP refers to the total value of all the final goods and services that produced in the economy…

Q: In the expenditure approach of measuring GDP, which of these would not be counted as government…

A: Gross Domestic Product is defined as the final value of all the goods and services which are…

Q: Find the last year GDP data (in billions) and the personal consumption expenditures data (in…

A: GDP is the total value of final goods and services produced in an economy during a particular period…

Q: How can National Income Accounting be used as an indicator of the improvement in terms of production…

A: The government bookkeeping system that analyses the health of an economy, expected growth, economic…

Q: Compare and contrast GDP versus GNP. Provide an example of each.  Based on the data provided,…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: GDP is a m diverse collection of goods and services over time. It is not possible to count the…

A: GDP or gross domestic product is the total market value of all the finished goods and services that…

Q: An economist, measuring GDP, first counted the value of aluminum created by an aluminum producer and…

A: GDP is the market value of final goods and services produced by an economy during a given period of…

Q: Mention three difficulties in calculating national income by expenditure method.

A: National income is an income which is accordingly and generally produced by a country during a…

Q: Why do national income accountants compare the market value of the total outputs in various years…

A: Gross domestic product  is the total market value of all the services and finished goods being…

Q: Country X had the following values for its macroeconomic indicators (in EUR bn): Indicator Value…

A: calculation of GDP using income approach- Compensation of employees +Gross operating surplus +net…

Q: We use market values to measure GDP because  a. We want to compare different types of goods  b.…

A: GDP refers to the final value of goods and services in an economy during a given year. This includes…

Q: A Chinese restaurant buys 100 cups of rice for a total of $10; they buy soy, fish and oyster sauces…

A: Gross domestic product is the value of all the final goods and services produced in the country in a…

Q: Measure GDP and NDP from the following data Consumption Expenditure              $ 28,500…

A: Here, information about various economic activities of a country is given to compute GDP and NDP.