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

Q: The key difference between the GDP deflator and the CPI is that a. the GDP deflator reflects the…

A: The main difference between the CPI and GDP deflator is, GDP deflator reveals the price of all…

Q: Why do economists include only final goods and services in measuring GDP for a particular year? Why…

A: GDP is a macroeconomic measure used in the computation of the aggregate total output produced in an…

Q: Gross Domestic Product (GDP) is the broadest measure of output for an economy. However, GDP does…

A: GDP stands for gross domestic product. It is the value of all final goods and services produced in…

Q: Define GDP

A: GDP or Gross Domestic Product is an indicator of growth.

Q: Thoroughly explain the components of GDP and relate those components to the Circular Flow model with…

A: The components of GDP are:1. Consumption expenditure2. Investment expenditure3. Government…

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

A: Answer: GDP is the sum of consumption expenditure (C), Investment expenditure (I), government…

Q: Calculate GDP using the information in the table below: SBillions Durable goods 250 Nonresident…

A: GDP computation by using expenditure method: Y= C+I+G+NX Where C is the consumer expenditure on…

Q: Why are intermediate goods and services excluded when calculating the value of GDP

A: Intermediate goods are used for making other goods for selling them to customers.

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: many goods and services are illegally sold or legally sold but not reported to the government. how…

A: Gross Domestic Product is an economic or market values  of the products produced in the economy in a…

Q: 23. Which of the following would be considered a final good or service in the calculation of GDP?…

A: GDP stands for Gross Domestic Product. It is the market value of all final goods and services…

Q: Why are there two measures of GDP.

A: The gross domestic product (GDP) is that the most commonly used indicator of an economy's size…

Q: Find Nominal GDP if GDP deflator is 136 and real GDP is $16,000

A: The data presented in the question above is:- GDP deflator = 136 Real GDP = $16,000 Nominal GDP is…

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: (National Income Accounting) Explain why intermediate goods and services usually are not included…

A: GDP is a measure of economic growth that computes the current market value of all final goods and…

Q: Why is GDP not a good indicator in measuring quantity of life?Explain.

A: Meaning of Gross Domestic Product (GDP): The term gross domestic product refers to the situation…

Q: Explain the impact of each of the following transactions on the calculations of Ghana’s GDP.a. A…

A: The term “GDP” refers to the Gross Domestic Product of the country. It is the market value of all…

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: Why is GDP an imperfect measure of well-being and why do economists use real GDP rather than nominal…

A: Life standards have increased all over the world as a result of economic development. Modern…

Q: Using the expenditure approach, calculate GDP using the following data: Item Amount in dollars…

A: we have many method for calculating the national income but here we can use the expenditure method…

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: Why the use real GDP is preferred by economists over nominal GDP to gauge economic well-being? (100…

A: Real GDP is the GDP which the economy is actually producing ie after the inflation has been taken…

Q: .Assume a Hyundai dealership in Delhi bought 30 Hyundais from Korea at a cost of $15,000 per car in…

A: here we calculate the given by following method as follow;

Q: Based on the data provided, calculate GDP according to the Expenditure Model.  Savings…

A: The measure that depicts the market value of goods and services that are being produced within the…

Q: The table below represents the goods that are produced by Siri bread and water are used by the…

A: REAL GDP The value of all goods and services generated by an economy in a given year (expressed in…

Q: Discuss why many argue that GDP is not a good measure of economic well-being of society.

A: The gross domestic product (GDP) is the standard measure of value-added produced during a certain…

Q: Compute nominal GDP in 2014. Compute real GDP in 2015. Compute the GDP deflator in 2016.   2014…

A: Nominal GDP refers to the current value of all the goods and services in a given time period. Real…

Q: . List the four components of GDP. Give an example ofeach.

A: GDP is a macroeconomic measure that is used to determine the total aggregate production in a…

Q: Discuss why alternatives to GDP are increasingly used to measure the standard of living

A: In an economy, it can be seen that the GDP is less likely used by the policymakers to measure the…

Q: Define GDP and distinguish between a final good and an intermediate good. please provide examples.

A: GDP stands for gross domestic product. It is the market value of all the final goods and services…

Q: Describe marilyn waring's assessment of gross domestic product as a measure of economic activity

A: Solution:- She has been outspoken in her criticism of the idea of gross domestic product (GDP), the…

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: Why does GDP omit sales of used goods? Of financial transactions? Of government transfer payments?

A: GDP is a macroeconomic measure that is used to determine the total aggregate output produced in an…

Q: Below are some data from the productions of milk and honey. price of quantity of price of quantity…

A: Nominal GDP: It is the complete market worth, everything being equal, and administrations created in…

Q: Explain three limitations in measuring the real GDP

A: The gross domestic product (GDP) is the standard measure of value-added produced during a certain…

Q: What is the US GDP for year end 2018?  What the personal consumption expenditures for year end 2019

A: The Gross Domestic Product (GDP) is the summation of money value of all the final goods and services…

Q: GDP is defined as the market value of all final goods and services produced within a country in a…

A: There are three methods to determine the gross domestic product (GDP) of a country: the income…

Q: GDP is a useful measure since it provides a single measure of the value of the entire variety of…

A: Gross Domestic Product (GDP) is the calculation of all the goods and services produced and sold…

Q: Explain the difference between GDP and GNI.

A: Gross Domestic Production is the total monetary of all the finished goods and services which are…

Q: What is the difference between intermediate and final goods? Why is the distinction between…

A: Macroeconomics studies the various forces affecting the economy as a whole like aggregate demand and…