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GDP calcuation and final goods and services
Please explain in detail the listed questions to give me a full understanding.
1. Why do economists include only the final goods in measuring GDP for a particular year? Why dont they include the value of stocks and bonds sold? Why dont they include thr vale of used furniture bought and sold?
2. What are the four supply factors of economics growth? What is the demand factor? What is the efficiency factor? Please illustrate these factors in the terms of the production possibilities curve.
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Over the past recent months it has been selling its widgets for $100 each and unit sales have averaged 5,000 units per month.
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Illustrate what would be a monetary policy prescription to reduce or eliminate deflation.
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