ECONOMICS
GDP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Businesses will invest more money in the short term to ensure higher profits in the future; GDP will then be pushed up.
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Consumers will spend more money in the short term to prevent future economic problems; GDP will be pushed up.
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Government will spend less and save money in anticipation of future economic contraction; GDP will be reduced.
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Consumers will spend less and save money in case future economic problems affect them; GDP will be reduced.
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Detailed explanation-1: -The four components of gross domestic product are personal consumption, business investment, government spending, and net exports. 1 That tells you what a country is good at producing. GDP is the country’s total economic output for each year. It’s equivalent to what is being spent in that economy.
Detailed explanation-2: -Conceptual problems in the use of real GDP as a measure of economic well-being include the facts that it does not include nonmarket production and that it does not properly adjust for “bads” produced in the economy. Per capita real GDP or GNP can be used to compare economic performance in different countries.
Detailed explanation-3: -Solved Question on Basic Problems Of An Economy What to produce? How to produce? For whom to produce? What provisions (if any) are to be made for economic growth?
Detailed explanation-4: -Which of the following is considered to be a problem in using GDP as a measure of national well-being? GDP is not adjusted for changes in crime and other social problems. national income minus retained corporate earnings plus government transfer payments and interest on government bonds.