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1. Why does inflation make nominal GDP a poor measure of the increase in total production from one to the next? How does the U.S' BEA deal with the problem inflation causes with nominal GDP?
2. Briefly explain whether you agree or disagree with the following statements.
a. "Whenever real GDP declines, nominal GDP must also decline."
b. "If a recession is so severe that the price level declines, then we know that both real and nominal GDP must decline."
3. Why is GDP an imperfect measure of economic well-being? What types of production does GDP not measure? Even if GDP included these types of production, why would it still be an imperfect measure of economic well-being?with this said this means that the GDP DOES NOT include: In the video Beyond GDP whose link is given in the GDP module, what natural resource do they discuss and how do they think it should fit into measurement of an economy? (5 pts
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Estimating and Predicting Cost * Estimates of future costs can be obtained from a cost function, which relates cost of production to level of output and other variables which t
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