2. Discuss the merits and demerits of GDP as a measure of the economy\'s output

Question

2. Discuss the merits and demerits of GDP as a measure of the economy's output performance and as a measure of its standard of living. 3. According the U.S Bureau of Economic Analysis website, find the data to the following questions of U.S. economy. a, What were the growth rates for the first two quarters of 2018? b, What was the highest growth rate in the last five years? c, Which state has the lowest growth rate in the first quarter 2018? d, What was the growth rates of Indiana for the first quarter 2018?

Explanation / Answer

GDP cannot be taken as an appropriate measure of a country's standard of living. This can be taken by taking the examples of some of the Arabian countries, which might be rich due to their oil reserves and thus high GDP level, however, they lack equality amongst genders thereby leading to lower quality of life for the females living in these countries.

3. a. The growth rate in the first quarter was 3.2%, while it increased to 4.2% in the second quarter of 2018.

b. The highest growth rate has actually been received only in the third quarter of 2014, with a growth rate of 4.9%.

c. Alaska had the slowest growth rate in first quarter of 2018.

d. The growth rate of Indiana was 2.8% at the end of first quarter.

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