Economics
GDP and Welfare
Practice questions
Measurement of economic growth in macroeconomics is generally linked with which of the following?What is a possible limitation of per capita income as an indicator of economic welfare?Why is the idea of income distribution linked with national income in macroeconomics?If the government wants to increase aggregate demand by reducing taxes, which macroeconomic idea is involved?If inflation and unemployment both rise, why is this a complex situation in macroeconomic study?Why are income, output and expenditure studied together in national income accounting?If aggregate demand rises but the economy is at full capacity, why may pressure come on prices?If total output is constant but the population is rising, what may macroeconomic analysis focus on?If total output rises but environmental damage also rises, which limitation of a macroeconomic measure is shown?What can be a limitation of national income data in macroeconomics?Why is it risky to treat national income and economic welfare as identical in macroeconomics?What is the main reason for excluding intermediate goods while measuring national income in macroeconomics?If exports increase domestic output and employment, which macroeconomic relationship does this show?Why is it necessary to understand the limitation of average indicators in macroeconomics?If national income rises but income distribution remains very unequal, which limitation of macroeconomic analysis is shown?What different information does per capita income provide compared with national income?Why can poverty remain even when per capita income rises?Why does treating national income and economic welfare as identical require caution?Why can success of economic policy not be measured only by a rise in national income?What is the biggest caution while using average income in macroeconomics?