Name: Macabanti, Patricia Janelle P.

BSED 3-A

1. Explain why GDP is a good measure of the economy’s performance?

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2. Notwithstanding the importance of Nominal GDP, why is Real GDP better than
Nominal GDP in comparing economic performance in a given point in time?

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3. Why is it that, the two approaches in measuring GDP (Expenditure and Income
Approach) always ends up arriving at the same calculation?

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4. Explain the important role of GDP in economic policy making towards grosth.

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5. Explain the why GDP and Per Capita GDP cannot really measure the standard of
living of people within the economy?

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