Economics (MindTap Course List)
13th Edition
ISBN: 9781337617383
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 7, Problem 10QP
To determine
Explain why economists prefer real
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In your opinion, why is real GDP a better financial indicator than nominal GDP?
Which is better for making comparisons over time, nominal GDP or real GDP, and why?
What is the difference between GDP and Gross National Product (GNP)? Why do economists look at per capita measures of GDP and GNP when making comparisons between nations?
Chapter 7 Solutions
Economics (MindTap Course List)
Ch. 7.1 - Prob. 1STCh. 7.1 - Prob. 2STCh. 7.2 - Prob. 1STCh. 7.2 - Prob. 2STCh. 7.2 - Prob. 3STCh. 7.4 - Prob. 1STCh. 7.4 - Prob. 2STCh. 7.4 - Prob. 3STCh. 7 - Prob. 1QPCh. 7 - Prob. 2QP
Ch. 7 - Prob. 3QPCh. 7 - Prob. 4QPCh. 7 - Prob. 5QPCh. 7 - Prob. 6QPCh. 7 - Prob. 7QPCh. 7 - Prob. 8QPCh. 7 - Prob. 9QPCh. 7 - Prob. 10QPCh. 7 - Prob. 11QPCh. 7 - Prob. 12QPCh. 7 - Prob. 13QPCh. 7 - Prob. 14QPCh. 7 - Prob. 1WNGCh. 7 - Prob. 2WNGCh. 7 - Prob. 3WNGCh. 7 - Prob. 4WNGCh. 7 - Prob. 5WNGCh. 7 - Prob. 6WNGCh. 7 - Prob. 7WNGCh. 7 - Prob. 8WNGCh. 7 - Prob. 9WNGCh. 7 - Prob. 10WNGCh. 7 - Prob. 11WNG
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- Why might even real GDP be a misleading index of changes in output between 1950 and 2015 in the United States?arrow_forwardList some of the reasons why economists should not consider GDP an effective measure of the standard of living in a county.arrow_forwardThere are two issues that become apparent when considering GDP on a global basis. When comparing GDPs, can these factors be included, and what are they?arrow_forward
- When thinking about the GDP on a global basis, two concerns become immediately obvious. When comparing GDPs, is it possible to take these things into account, and if so, what precisely are they?arrow_forwardWhy could calculating GDP each year using current prices overstate or understate changes in actual output year to year?arrow_forwardReal GDP versus Nominal GDP?arrow_forward
- How should we calculate a value for the things that GDP does not currently measure?arrow_forwardHey, I need help with the following problem divided into seven smaller parts: Calculate nominal GDP for 2011 and 2012. Using 2011 as the base year, calculate real GDP for 2011 and 2012. Based on your answer from part (b), by what percentage did real GDP grow between 2011 and 2012? Now, calculate real GDP for 2011 and 2012 using 2012 as the base year. Based on your answer from part (d), by what percentage did real GDP grow between 2011 and 2012? Using 2011 as the base year, what was the GDP deflator in 2011 and 2012? Based on your answer from part (f), by what percentage did prices change between 2011 and 2012? Thank you in advance!arrow_forwardHow useful is GDP as a measure for countries' well-being and why? What other measures could be included in comparing well-being across countries? If you were to design an index to measure well-being in a country, what factors would you include in the index?arrow_forward
- Why might per capita GDP be only an imperfect measure of a country’s standard of living? What does GDP not tell us about the economy? Which of the following are included in GDP, and which are not?arrow_forwardGDP is an important measure of economic activity, telling us about production as well as employment and income. However, it is not a perfect measure. What are two problems with using GDP to measure the standard of living?arrow_forwardWhat difficulties exist when attempting to draw comparisons between countries like the U.S and China with GDP s as a measure of standard of living?arrow_forward
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