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Chapter 6 “Why Do We Continue to Use Antiquated policies as Scalping Laws When Free Markets Are Best for Most Market Situations? Select this link to view the full details of this Assignment. Read Chapter 10, and remember to include references and links to the websites that you feel are important contributors to your posts (comments). Economists use Gross Domestic Product (GDP) to measure the economic activity and the national income. 1. What are the major components of the USA GDP? Explain the contribution of each component to the GDP with data. 2. What is the difference between real Gross Domestic Product (GDP) and nominal GDP? What is the relationship between the real GDP and the business cycle? Gross Domestic Product (GDP) only measures the value of marketed goods and services for a country during a given period of time. Is the GDP measure underestimating or overestimating national production and total income in the economy?
What are the limitations of the GDP in measuring total output and national welfare? What products (services) are excluded from the GDP computation? Journal entry questions are related to the application of the key concepts you learn to the real-world economic issues. The questions contain key economic principles and ideas related to the Macroeconomics topics you are learning. Please feel free to express your perspectives and state how the economic principles and ideas affect your economic decision-making process. It is customary for the News media to report about consumer confidence and investor confidence while discussing the national economy. How do you think the confidence of the economic agents affects the economy? From personal or work experience, state factors that could cause an increase in consumer spending and investor investment. Do consumer and investor confidence trend reports affect your spending pattern? The government purchases component of GDP does not include spending on transfer payments such as Social Security.
GDP does not also include the value of used goods that are resold. Do you think such exclusion make GDP a less informative measure of economic well-being? What other production of goods and services do you think are excluded from the GDP? What is the impact of such exclusion on the economic welfare? Economists measure the performance of the labor market using unemployment statistics. Based on the Assignment questions explain the cost of living and unemployment issues in the economy. Chapter 10 “Because of Its Lack of Precision, Is GDP Really Useful? Select this link to view the full details of this Assignment. Read Chapters 11 and 15, and remember to include references and links to the websites that are important contributors to your posts (comments). There are various forms of unemployment. There are also ongoing debates on the effectiveness of measuring the rate of unemployment and its policy implications. What are the different types of unemployment and how are they related to the condition of the economy during a given period? Is it possible for the number of employed workers to increase while the unemployment rate rises?