Chapter 19: Problem 21
What does GDP not tell us about the economy?
Chapter 19: Problem 21
What does GDP not tell us about the economy?
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Get started for freeWhat are the main components of measuring GDP with what is produced?
Why must you avoid double counting when measuring GDP?
U.S. macroeconomic data are among the best in the world. Given what you leamed in the Clear It Up "How do statisticians measure GDP?", does this surprise you, or does this simply reflect the complexity of a modern economy?
Which of the following are included in GDP, and which are not? a. The cost of hospital stays b. The rise in life expectancy over time c. Child care provided by a licensed day care center d. Child care provided by a grandmother e. A used car sale f. A new car sale g. The greater variety of cheese available in supermarkets h. The iron that goes into the steel that goes into a refrigerator bought by a consumer.
Cross country comparisons of GDP per capita typically use purchasing power parity equivalent exchange rates, which are a measure of the long run equilibrium value of an exchange rate. In fact, we used PPP equivalent exchange rates in this module. Why could using market exchange rates, which sometimes change dramatically in a short period of time, be misleading?
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