Macroeconomics

Running Head : MACROECONOMICSNameCourseUniversityTutorDateWhat are the shortcomings of using the GDP to banknote the nation s economic wellnessGDP or Gross Domestic yield is perceived as the most all important(p) economic forefinger 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 epitome which makes it an ineffective tool to measure nation s well-being or their welfare . The calculation of GDP is done through dickens major nestlees that is the income approach as well as the outlay approach where the hoidenish with a higher GDP does not necessarily stand a better rank in as far as economic welfare is concerned as there is a clear distinction among economic emersion and economic evolution .

Economic growth simply means that the GDP is higher than was the case in a previous time while economic development incorporates vital aspects such as the development of infrastructures that improves people s wellbeing (Wessels W , 2006GDP ignores rest home production and consequently fails as a tool to measure people s wellbeing (Wessels W , 2006 . As Allan and Laurence noted 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 have a low GDP tho have a higher production in the household or subsistence sectors thus have her...If you want to get a full essay, order it on our website: Ordercustompaper.com

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