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Define GDP growth in an economy.
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- Why might even real GDP be a misleading index of changes in output between 1950 and 2015 in the United States?As you learned in the most recent chapter, GDP is the broadest measure of economic health in the U.S. Therefore, the discussion forum for the week will ask you to discuss GDP in your own words. Specifically, Business leaders, Government officials, and investors are often fixated on GDP results and economic growth. Why? What does it matter? The same level of interest is given to productivity. What is it and why does it matter in the scheme of things? What does GDP fail to tell us?what is the importance of calculating the growth rate of nominal GDP and real GDP?
- Give five reasons why GDP is the most widely used measurement in determining economic growth and development? Explain your answer.What is GDP? What is real GDP ? What is per capita GDP ? Why is our GDP shrinking in the ongoing Corona Virus Crisis? What is a clear indication that the GDP will be decreasing?Why would an economist use real GDP rather than nominal GDP to measure growth? Nominal GDP allows you to compare GDP from different years Nominal GDP is a better measure of a nation's standard of living Real GDP is adjusted for inflation and reflects output/production more accurately Real GDP is calculated for a longer period of time than does nominal GDP
- Why is real GDP a better measure of economic growth than nominal GDP?Which of the components of GDP must increase if we are to experience greater rates of economic growth? If the illegal drug trade was legalized what would happen to GDP? What would happen to GDP if a significant number of house-spouses who were previously staying home to care for their children began taking jobs and placing their children in day-care? Would the nation's well-being necessarily be better off?What does the term "GDP" stand for in economics? a) Gross Domestic Product b) General Demand Principle c) Government Debt Payment d) Growth Development Plan
- Explain the two sources for potential GDP growth in words and diagramsCompare the nominal GDP growth rates and the real GDP growth rates for 2015, 2016, and 2017. What do you conclude? Which of the two accurately measures the GDP and why?How Real GDP is measured? Explain Real GDP of the United States at present time.