List and explain the two different approaches used to measure GDP
The two different approaches are: the expenditure approach and the income approach. When using the expenditure approach the amount of money spent by buyers on final goods and services is summed. The spending by the four sectors of the economy (households, businesses, government and foreign sector) is combined to yield the GDP. The income approach is computed by summing the income earned by the different resources that were used to produce a country's goods and services (national income) and then making some adjustments to arrive at GDP.
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In the post-World War II period, considerable growth in total production took place in the United States
But at the same time, businesses were dumping their waste into the Great Lakes with minimal cost to themselves, significantly polluting the bodies of water as a result. This occurrence is an example where A) real GDP gives an overly positive view of economic welfare. B) real GDP gives an overly negative view of economic welfare. C) investment would have been a better measure of total production. D) the pollution counts as a final good.
How is the current demand for a good related to its future price?
a. If the price is expected to drop, current demand will fall. b. If the price is expected to drop, current demand will rise. c. If the price is expected to rise, current demand will fall. d. Current demand is not related to future price.