Macroeconomics

Running Head : MACROECONOMICSNameCourseUniversityTutorDateWhat are the shortcomings of using the gross domestic product to vizor the nation s economic wellnessGDP or Gross Domestic weaken is perceived as the most all important(p) economic index and used for comparison purposes in as far as economic performance of nations is concerned . However , it has many limitations or shortcomings in its calculation as well as its double which makes it an ineffective cats-paw to measure nation s well-being or their welfare . The calculation of GDP is done through demon major nestlees that is the income approach as well as the expenditure approach where the hoidenish with a higher GDP does not needs stand a better rank in as far as economic welfare is concerned as there is a clear distinction among economic emergence and econo mic evolution .

Economic growth simply centre that the GDP is higher than was the case in a previous time while economic development incorporates vital aspects much(prenominal) as the development of infrastructures that improves people s wellbeing (Wessels W , 2006GDP ignores stick around home production and consequently fails as a tool to measure people s wellbeing (Wessels W , 2006 . As Allan and Laurence observe in their distinguished book , an integrated approach , GDP ignores the subsistence and the underground economy which are also important in determining people s welfare . A country may call for a low GDP t ho have a higher production in the household! or subsistence sectors thus have her...If you want to get a amply essay, order it on our website: OrderCustomPaper.com

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