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Discussion - What GDP Does and Does Not Measure
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We know what GDP measures. List and discuss the benefits of using the expenditure approach to measuring GDP. What does it measure well, and what things are not measured by GDP but are still important in our lives?
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The expenditure approach of GDP measures out through calculations of consumption, investment, govt. spending, and net exports . NominalGDP in produced using this method, then inflation is adjusted to produce real GDP. This measures the health of the country or " the standard of living" as it involves tracking the economy's growth or decline and being able to identify if a country is in or out of recession creating a clear view of where government and people implement their spending. The GDP does not measure the distribution of growth income inequality, or volunteer work which are both essential in the economy.
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