ECONOMICS
BUSINESS CYCLES
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
GDP isn’t reliable
|
|
|
GDP is commuted in dollars
|
|
|
GDP always includes inflation
|
|
|
GDP does not include work done at home such as house renovations
|
Detailed explanation-1: -Cons. GDP does not capture welfare or human well-being. GDP may not be a strong basis to predict economic growth in times of high uncertainty. As international accounting standards are slow to change and require international consensus, GDP is slow to reflect changes in the world.
Detailed explanation-2: -A shortcoming of using real GDP as a measure of economic well-being is that it does not measure changes in: leisure time. environmental quality.
Detailed explanation-3: -Which of these is not a shortcoming of GDP as a measure of standard of living? It only counts final goods and services and not intermediate goods.
Detailed explanation-4: -Household Production Satellite Account Things like cooking, cleaning, watching the kids, and so forth? Such unpaid work is not included in BEA’s calculation of U.S. gross domestic product.