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Measure of national economic wellbeing

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Reference no: EM131488077

Question 1

  • In spite of the limitations (shortcomings), why is the GDP used as a measure of national income as well as a measure of national economic wellbeing?
  • Is the GDP measure underestimating or overestimating national production and total income in the economy during various business cycles? Why?
  • What are the limitations of the GDP in measuring total output and national welfare? What products (services) are excluded from the GDP computation?
  • What are the impacts of the shortcomings of the GDP as a measure of the national product and national economic welfare (wellbeing)?

Reference no: EM131488077

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