Why do economists prefer real gdp as a measure of economic

Assignment Help Macroeconomics
Reference no: EM13335264

If prices rise, people’s income from selling goods increases. However, the growth of real GDP ignores this gain. Given this information, why do economists prefer real GDP as a measure of economic well-being?

Reference no: EM13335264

Questions Cloud

Why do you suppose the federal government gives special : Why do you suppose the federal government gives special treatment to owners of fertile farmland rather than, say, automobile mechanics?
What minimum diameter is required for the wire : A steel wire of length 1.92m with circular cross section must stretch no more than 0.210cm, What minimum diameter is required for the wire
Explain treatment of the solution with clo : Treatment of the solution with ClO- in alkaline solution yields a yellow solution and a colored precipitate. Ions Present- Ions absent
Purchase of merchandise on credit using perpetual inventory : Which of the is allowed under generally accepted accounting principles - purchase of merchandise on credit using a perpetual inventory system includes
Why do economists prefer real gdp as a measure of economic : If prices rise, people’s income from selling goods increases. However, the growth of real GDP ignores this gain. Given this information, why do economists prefer real GDP as a measure of economic well-being?
What is the final speed of the three coupled boxcars : Two coupled boxcars are rolling along at 4.0m/swhen they collide with and couple to a third, stationary boxcar. What is the final speed of the three coupled boxcars
Would the commissions for the real estate agent : Is the value of a house built in 2000 and resold in 2011 included in 2011 GDP? Why or why not? Would the commissions for the real estate agent who helped buy (and sell) the house in 2011 be counted in 2011 GDP? Why or why not?
Evaluate the standard cell potential : A voltaic cell is based on a Co2+(aq)|Co(s) half-cell and an AgCl(s)|Ag(s) half-cell. Calculate the standard cell potential.
What is the average total profit generated for the month : What is the highest volume of our highest margin product sold in December?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd