Question

Is GDP a good measure of the economy. Defend your answer

Answer 1

Answer:

Yes

Explanation:

It is the best way to measure the growth of the country

Answer 2

GDP is not an ideal measure to trace the development or economic growth of any nation.

Explanation:

GDP refers to the gross domestic product which is the sum total of all the goods and services produced in an economy.

However, it is not a good measure of the economy as it only includes the organized sector and its production.

Moreover, it is a very limited way of calculating the economic strength as the GDP does not include other important factors of economic development such as financial independence.

GDP also does not account for barter transactions which means that even when GDP is calculated it is under-calculated.