Question

In: Economics

What does United States GDP measure and what should United States GDP measure?  

What does United States GDP measure and what should United States GDP measure?  

Solutions

Expert Solution

GDP is the monetary measure of all final goods and services produced within US boundary in a given period. It measures the overall size of an economy .

The US GDP is calculated using expenditure method: GDP = C+I+G+NX

All these components contribute to the US economy. The largest contribution comes from consumption spending which accounts for more than two-thirds of the US GDP. It includes both durable and non-durable items. Government purchases represent government consumption and gross investment. Investment includes both fixed and residential investment. Net exports is exports less imports.

Rahul Sunny answered 2 years ago
Next > < Previous

Related Solutions

What does this mean for the United States to have this fresh and growing GDP star?...
What does this mean for the United States to have this fresh and growing GDP star? How has our economy changed to date?
Many economost claim that the United States current measure of GDP is inadequate meaning there are...
Many economost claim that the United States current measure of GDP is inadequate meaning there are better alternatives. The question is this: What are some reasons for why the current measure of GDP has NOT changed? Meaning what are all of the reasons to keep the current measure of GDP the way it is. What are the pros of the current measure of GDP?
a. What does GDP measure? b. How well does GDP measure the well-being of a society?
a. What does GDP measure? b. How well does GDP measure the well-being of a society?
In the term "real GDP," what does "GDP" stand for and what does it measure? (5...
In the term "real GDP," what does "GDP" stand for and what does it measure? (5 points) What does "real" indicate? (5 points) Why does inflation make nominal GDP a poor measure of the increase in total production from one year to the next? (5 points)
what is GDP? What does it measure? What is calculated in GDP? (in your own words...
what is GDP? What does it measure? What is calculated in GDP? (in your own words )
1) Describe in detail the measurement of GDP. Document what GDP does not measure. Is GDP...
1) Describe in detail the measurement of GDP. Document what GDP does not measure. Is GDP a good measure of the standard of living and the quality of life of a society? Justify your answer. How would you suggest improving GDP to better measure standard of living and quality of life or would you suggest an entirely measure or set of measure be developed? Explain.
a.) Define GDP. b.) What are three reasons why GDP in the United States has increased...
a.) Define GDP. b.) What are three reasons why GDP in the United States has increased over time? c.) Consider a country with a simple economy that produces two goods: apples and bananas. Data is collected in two years: 2016 and 2017. 2016: Price of Apples: $2 Quantity of Apples: 10 Price of Bananas: $3 Quantity of Bananas: $20 2017: Price of Apples: $4 Quantity of Apples: $30 Price of Bananas: $6 Quantity of Apples: $60 Complete nominal GDP in...
a.) Define GDP. b.) What are three reasons why GDP in the United States has increased...
a.) Define GDP. b.) What are three reasons why GDP in the United States has increased over time? c.) Consider a country with a simple economy that produces two goods: apples and bananas. Data is collected in two years: 2016 and 2017. 2016: Price of Apples: $2 Quantity of Apples: 10 Price of Bananas: $3 Quantity of Bananas: $20 2017: Price of Apples: $4 Quantity of Apples: $30 Price of Bananas: $6 Quantity of Apples: $60 Complete nominal GDP in...
Why should the United States be concerned that China's annual GDP growth rate is so much...
Why should the United States be concerned that China's annual GDP growth rate is so much higher than the US? What is one thing the US doing to stimulate GDP growth?
what should happen to the millions of undocumented immigrants in the united states?
what should happen to the millions of undocumented immigrants in the united states?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT