ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The Nation of Nardrupia has a very high GDP. If that is the case, which of the following concerning life in the country is true?
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People have a great standard of living.
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Everyone in the country is wealthy.
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The country has a market economy.
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A high GDP tells you nothing about life in the country.
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Explanation:
Detailed explanation-1: -Rising GDP means the economy is growing, and the resources available to people in the country – goods and services, wages and profits – are increasing.
Detailed explanation-2: -Which of the following is considered to be a problem in using GDP as a measure of national well-being? GDP is not adjusted to account for depletion of natural resources.
Detailed explanation-3: -Real GDP adjusts for price changes due to inflation/deflation. The main difference between nominal GDP and real GDP is the adjustment for inflation.
There is 1 question to complete.