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Running Head: MACROECONOMICS Macroeconomics Name of the Student Name of the University

   

Added on  2021-05-30

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Running Head: MACROECONOMICSMacroeconomicsName of the StudentName of the UniversityAuthor note
Running Head: MACROECONOMICS Macroeconomics Name of the Student Name of the University_1

MACROECONOMICS1Table of ContentsAnswer 1..........................................................................................................................................2Answer 2..........................................................................................................................................2Answer 3..........................................................................................................................................3Answer 4..........................................................................................................................................3Answer a......................................................................................................................................3Answer b......................................................................................................................................4Answer c......................................................................................................................................4Answer d......................................................................................................................................4Answer e......................................................................................................................................4
Running Head: MACROECONOMICS Macroeconomics Name of the Student Name of the University_2

MACROECONOMICS2Answer 1Real GDP is a representative measure of goods and services in the economy. Real GDP isa more accurate measure of aggregate output as it is an inflation adjusted measure of output. Ahigher real GDP of US today as compared to that in 60 years ago implies that monetary values ofgoods and services today is higher than 60 years back. This however does not provide any deepinsight about well-being as higher real GDP might be resulted from an increase in population ortechnological advancement. It tells nothing about well-being of people in US. Neither does itindicate anything about availability of basic necessities in the nation.GDP is a quantitative measure. It therefore excludes qualitative aspects of life likehappiness, status of health and education. It also does not indicate distribution of income.Exclusion of informal market, overestimation of externalities are some other limitation of GDP.Despite the limitations, GDP is considered as the single best measure of economy’s well-being. It represents sum of all the goods and service produced that the economy produces. Itmeasures total income and total expenditure of the nation. As GDP incorporates almost all thequantitative aspects of economy’s output it is considered as the best single measure ofeconomy’s well-being.Answer 2Intermediate good is defined as the goods or services that are used to produce finishedproducts used in final consumption. One industry sells these goods to other industries either toresale or to produce some other goods.
Running Head: MACROECONOMICS Macroeconomics Name of the Student Name of the University_3

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