We measure Real GDP in order to determine whether we are achieving high and sustained economic growth.
1. List the two approaches to computing GDP.
2. List the components of GDP according to the expenditure approach.
3. Describe how to use the income approach to calculate GDP.
4. Name the national income accounting measures, besides GDP and national income that are used to measure the output produced and income earned in an economy.
5. Explain why it is more meaningful to use Real GDP than GDP to measure economic growth.