Short Paper # 1 (SP # 1) – Gross Domestic Product (GDP) and the standard of living. SP # 1 must be typed/word processed, follow APA format, be double spaced, have a proper cover page, stapled. SPs that are handwritten, sloppy, unprofessional or do not follow instructions will be penalized. You must include at least one visual aid in the body of the paper.
Read the article If the GDP is Up, Why is America Down posted on online under SP # 1 and the GDP chapter from your textbook. Write an essay in which you address all of the following. There is to be no use of quotes (they will be penalized) from the article – everything needs to be explained in your own words. This should be 4 pages typed, excluding cover page. More than 4 page sis fine, less than 4 pages is not. You are to write SP # 1 only based on the article and the chapter in your textbook.
a. Outline the historical origins of the use of GDP. Why did we feel we needed to measure GDP at all? How does GDP measure our nations production?
b. In what sense does GDP NOT accurately measure our production levels and standard of living in the USA economy? What is it about the way we have constructed GDP that leads to this problem? Explain in detail.
c. What and how do the authors suggest we improve GDP? Be certain to evaluate the authors argument. Does it make sense? Is it practical? Explain.
d. Then, offer three suggestions of your own on how you would further improve the measurement of GDP. (these are to be your own proposals, your own ideas, if you repeat what the author uses, that is not answering the question.)
e. This article is now 25 years old. Is it still current? Why or why not? Explain yourself.
