Reference no: EM131715809
Assignment
Your friend at work says the U.S. economy is not doing well: "We are just not a strong economy anymore." You are not entirely convinced by her argument, so you do some research. Here is what you find:
• There are three major powers in the world economy according to total GDP: China at $21.3 trillion; the EU at $19.2 trillion; and the United States at $18.6 trillion (all in real 2016 dollars). Maybe your friend is right?
• Then you look at per capita GDP and it does not seem to tell the same story: China per capita GDP is $15,400; EU per capita GDP is $37,800; and U.S. per capita GDP is $57,300. Maybe your friend is wrong?
Perhaps we really need to understand what GDP measures and what it does not measure.
Using the above facts, make the case that the United States is still economically strong.
• What does GDP measure and what does that tell us about our country's economic strength?
• Do you feel that GDP is valuable in understanding our country's economic strength? Explain why or why not.
• Do you believe that there is a better measure of a country's economic strength that we should also use (in addition to GDP)? Explain your answer. If you don't think there is, explain why.
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