GDP is a good and useful measure of general economic activity for each of the following reasons except for which one? (Which one of the following is not either correct or a reason to rely on GDP as a measure of economic activity?) In order to raise the amount of goods and services available in a country, GDP must rise. In order to have a true measure of economic activity, the income of all people needs to be considered, and the value of goods and services for all people must be considered, and GDP considers the income and spending for all people (in the country). O The total value of GDP is lower if the distribution of income is lower and less equitable, and is higher if the distribution is higher and more equitable, and this makes GDP a good indicator of aggregate economic activity. In order to raise the income of some people, and have the income of no people go down, GDP must rise. People care about their income, and GDP is a measure of total income.
GDP is a good and useful measure of general economic activity for each of the following reasons except for which one? (Which one of the following is not either correct or a reason to rely on GDP as a measure of economic activity?) In order to raise the amount of goods and services available in a country, GDP must rise. In order to have a true measure of economic activity, the income of all people needs to be considered, and the value of goods and services for all people must be considered, and GDP considers the income and spending for all people (in the country). O The total value of GDP is lower if the distribution of income is lower and less equitable, and is higher if the distribution is higher and more equitable, and this makes GDP a good indicator of aggregate economic activity. In order to raise the income of some people, and have the income of no people go down, GDP must rise. People care about their income, and GDP is a measure of total income.
Chapter5: Gross Domestic Product
Section: Chapter Questions
Problem 9SQ
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Transcribed Image Text:GDP is a good and useful measure of general economic activity for each of the following reasons except
for which one? (Which one of the following is not either correct or a reason to rely on GDP as a measure
of economic activity?)
In order to raise the amount of goods and services available in a country, GDP must rise.
In order to have a true measure of economic activity, the income of all people needs to be
considered, and the value of goods and services for all people must be considered, and GDP
considers the income and spending for all people (in the country).
The total value of GDP is lower if the distribution of income is lower and less equitable, and is
higher if the distribution is higher and more equitable, and this makes GDP a good indicator of
aggregate economic activity.
In order to raise the income of some people, and have the income of no people go down, GDP
must rise.
People care about their income, and GDP is a measure of total income.
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