There are a number of measures of aggregate economic activity, such as GDP, GNP, national income, personal income, and disposable personal income. Each of these measures can be a good indicator, depending on the issue under consideration. For each of the following issues, give your reasons for selecting one of the measures just mentioned as the best indicator to use in studying the issue: a. the proportion of income households save b. the relative share of earnings going to labor versus capital c. the total output of final goods and services

There are a number of measures of aggregate economic activity, such as GDP, GNP, national income, personal income, and disposable personal income. Each of these measures can be a good indicator, depending on the issue under consideration. For each of the following issues, give your reasons for selecting one of the measures just mentioned as the best indicator to use in studying the issue: a. the proportion of income households save b. the relative share of earnings going to labor versus capital c. the total output of final goods and services

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

There are a number of measures of aggregate economic activity, such as GDP, GNP,
national income, personal income, and disposable personal income. Each of these
measures can be a good indicator, depending on the issue under consideration. For each
of the following issues, give your reasons for selecting one of the measures just
mentioned as the best indicator to use in studying the issue:
the proportion of income households save
b. the relative share of earnings going to labor versus capital
the total output of final goods and services
а.
с.

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