GDP Outdated, Here Are the Alternatives A panel of highprofile economists suggest measuring the economic wellbeing of families and removing the emphasis on GDP growth. Some economists propose including a value on housework and making better estimates of healthcare improvements. Nobel Laureate Angus Deaton suggests conducting a survey to ask people how happy they are. Suppose that a new index is calculated using the suggestions in the news clip.

a. Would the new index be a better measure of the standard of living than GDP per person?

Explain your answer.

b. Explain the challenges involved in trying to incorporate the new index.

c. Explain how the United Nations’ Human Development Index compares with the new index.

d. Is there likely to be a high correlation between GDP per person and the new index? Why or why not?