Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN: 9781285165875
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 25, Problem 1QR
To determine
Importance of the level and growth of GDP .
Expert Solution & Answer
Explanation of Solution
The level of a nation’s GDP measures both the total income earned by the nation and the total expenditure on the nation’s output of goods and services.
The growth rate of real GDP is a good measure of economic progress whereas the level of GDP is a good measure of economic prosperity. It is always preferred to live in a nation with greater economic prosperity; hence it is preferred to live in a nation with a high level of GDP than a low level of GDP even if the nation has a low growth rate.
Economics Concept Introduction
Concept Introduction:
GDP (Gross Domestic Product): Gross domestic product refers to the value of total goods and services produced in the given period of time within the boundaries.
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Chapter 25 Solutions
Principles of Economics, 7th Edition (MindTap Course List)
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