Question

And then an advantage and disadvantage of each approach. GNP and NI in the United States

Next though is how does the US government HELP creat GNP and NI.

And then how can the US government HURT GDP and NI.

As such how do YOU THINK we can define the governmental role most suitable for creating and sustaining a good, health, GDP and NI.

Answer 1

GnP Has advantages like useful for comparing countries and good indicators of economy. However disadvantage includes that it hides inequality as it doesn't represent distribution of wealth and also can be manipulated by government .

NI can be easily computed and is very qualitative in approach. However it is also misleading as it doesn't represent quality of life. Nor does it account fender biasdness as some kind of unpaid work is not accpunted as seen in less developed economies.

Government can easily create GNP and NI by expansionary fiscal and monetary policies and automatic stabilizer. At same time it can hurt it using contractionary fiscal policies and through excessive inports of products.

The government role is most suitable as it has best view of macroeconomic data and various factors are considered which can create GDP or NI. Through various social security measures, automatic stabilizer and taxcuts and healthcare benefits it can boost GNP and NI substantially and reduce inequality of wealth.