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Q1:Is GDP is good measure of economic well being ...? Discuss the relative term and argue whethedr GDP a good measure of economic well being or not.. ??

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Measuring A Nation's Income

Section5.4: Real Versus Nominal Gdp

Problem 4QQ

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Q1:Is GDP is good measure of
economic well being ...?
Discuss the relative term and
argue whethedr GDP a good
measure of economic well
being or not.. ??

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Last year, a small nation with abundant forests cut down 200 worth of trees. It then turned 100 worth of trees into 150 worth of lumber. It used 100 worth of that lumber to produce $250 worth of bookshelves. Assuming the country produces no other outputs, and there are no other inputs used in producing trees, lumber, and bookshelves, what is this nations GDP? In other words, what is the value of the final goods the nation produced including trees, lumber and bookshelves?