List five shortcomings of GDP which result in GDP not accurately measuring a country's well being
What will be an ideal response?
GDP does not include the underground economy.
GDP does not include household production.
GDP does not account for the value of leisure.
GDP does not account for economic "bads."
GDP reveals nothing about the distribution of income.
You might also like to view...
The short-run aggregate supply curve shifts leftward when the
A) price level increases. B) general level of technology advances. C) money wage rate increases. D) availability of on-the-job training expands to all workers.
Assume that the Fed has a target inflation rate of 2% and that the values for how much the nominal target federal funds rate responds to a deviation of inflation from its target, g, and how much the nominal target federal funds rate responds to real
GDP, h, are both 0.5. According to the Taylor rule, if inflation increases by 6%, the real interest rate will increase by A) 3%. B) 4%. C) 6%. D) 9%.
The reason that the multiplier is smaller if there are variable taxes is that
A. taxes add to government spending, which increases income. B. people get angry about taxes and decide to work less. C. tax increases shift the expenditure line upward. D. part of an increase in income is taken away in taxes.
Refer to the given data. The firm will maximize profits (or minimize losses) by employing:
Use the labor demand data on the left and the labor supply data on the right in answering the following question:
A. 5 workers.
B. 4 workers.
C. 3 workers.
D. 2 workers.