Question

1.Why is GDP / Capita a more accurate way of determining the well-being of a people?

2.What is the difference between nominal GDP and real GDP?
3.How is economic growth the same as GDP? How is it different from GDP?
4. Explain the four phases of the business cycle

Answer 1

1. GDP is an indicator of a society's standard of living, but it is only a rough indicator because it does not directly account for leisure, environmental quality, levels of health and education, activities conducted outside the market, changes in inequality of income, increases in variety, increases in technology. 2. Real GDP is accurate to hundreds of dollars; nominal GDP is accurate to thousands of dollars. 3. Nominal GDP is an assessment of economic production in an economy that includes current prices in its calculation. 4. The four stages of the cycle are expansion, peak, contraction, and trough. Factors such as GDP, interest rates, total employment, and consumer spending, can help determine the current stage of the economic cycle. Insight into economic cycles can be very useful for businesses and investors.

Step-by-step explanation:

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