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Pros and Cons of GDP as a Measure of Economic Health

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What are the advantages and disadvantages of using the Gross Domestic Product (GDP) as a measure of productivity and economic health? Explain your answers.

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GDP is the total monetary value of all goods and services produced domestically by a country. It includes income earned domestically by foreigners, but does not include income earned by domestic residents on foreign ground. The data needed to calculate GDP is readily available, it's easy to understand, and is broadly accepted.

GDP can be used as a rough indicator of national progress in most of the world. GDP is often divided by the population of a country to obtain GDP ...

Solution Summary

The advantages and disadvantages of using Gross Domestic Product (GDP) as a measure of productivity and economic health are explained in this solution.

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