Suppose the amount of human and natural resources in an economy increase. Which one of the following would be the long-run effect? GDP Deflator decreases, no change in RGDP GDP Deflator increases, RGDP increases GDP Deflator increases, no change in RGDP GDP Deflator decreases, RGDP increases

Explain briefly whether each of the following would cause GDP to overstate or understate the degree of change in the broad standard of living. The environment becomes dirtier The crime rate declines A greater variety of goods become available to consumers Infant mortality declines

List some of the reasons why economists should not consider GDP an effective measure of the standard of living in a county.

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?