1.) Identify the two basic approaches to measuring GDP. How do they differ? Explain why the amounts of the two approaches are unequal.
- The two basic approaches of measuring GDP is microeconomics and macroeconomics. Microeconomics examines actions of single markets and individuals. Macroeconomics examines the economy as a whole.
2.) What are the three major goals of macroeconomics? Explain which goal is the most important to you and/or someone you know.
-The three main goals are economic growth, low inflation rate, and low unemployment. For me, low inflation rate is most important for me. My pay does not rise but the cost of goods keep going up, making for tough times sometimes.
3.) Why is GDP an inappropriate measure of well-being?
- GDP is not a measure of well-being. GDP is a measure of economic output of a given country in a year.