Measuring the Macroeconomy

Measuring the Macroeconomy Your Name Subject and Section Professor’s Name September 15, 2019 Question: Is GDP enough to measure our country’s progress? Summary: The concept of Gross Domestic Product (GDP) has always been one of the most dominant measures of economic growth and success among countries. Generally, it is believed that the higher the GDP, the better the economy and the standards of living for its citizens. However, this belief is somehow inaccurate. This is because while GDP is one of the most effective measures of the State’s financial (and political) capacity, this measuring tool also fails to consider several salient factors that truly creates a high quality of living for the citizens (TheEconomist.com, 2016). In its general sense, estimating a country’s GDP would require the measurement of the amount of production and the “output bought and sold” within a particular period (TheEconomist.com, 2016). While this provides a measure of the production capacity of the country, it does not provide a measure as to how this trickles down to the benefit of the citizens. It must be noted that many factors affects the...