due in 4 hours…1page macroeconomics 2

due in 4 hours…1page macroeconomics

APA

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Q.When working with GDP data, economists are using the market value of aggregate output in order to facilitate comparisons across years rather than just the amount of output itself (e.g. the value of refridgerators and apples produced rather than the quantities). Why is that–what problem does this address? This solution of using values is not a perfect solution. What new issues arise when we try to compare market values of aggregate output across time periods. How do macroeconomists attempt to address this issue? (150words)

When we calculate GDP we do not include intermediate goods. We also leave out things like securities (stocks and bonds) and we leave out used goods. Would it be more or less accurate for economists to include some or all of these? Explain what issues arise in each of these three cases if they were to be included in our measure of GDP.

150words

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