What gdp measure

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Your friend at work says the US economy is not doing well. "We are just not a strong economy anymore." You are not entirely convinced by her argument, so you do some research. Here is what you find.There are three major powers in the world economy according to total GDP: China at $21.3 trillion; the EU at $19.2 trillion; and the US at $18.6 trillion. All in real 2016 dollars. Maybe your friend is right? Then you look at per capita GDP and it does not seem to tell the same story: China per capita GDP $15,400; EU per capita GDP $37,800; and US per capita GDP $57,300. Maybe your friend is wrong?

Perhaps we really need to understand what GDP measure and what it does not measure.

Using the above facts, make the case we still economically strong.

1. What does GDP measure?

2. What does GDP tell us?

3. What does GDP leave out?

Reference no: EM131607076

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