Gross Domestic Product (GDP)
“Macroeconomics”
1. What role does consumer consumption play in GDP? What has your consumption (what is your pie chart like as compared to the one above or the one in the book on page 201) and savings pattern been over the last 5 years? Do you save more? Have you spent more and why?
2. What role does Government spending play in GDP? What happens when it spends less?
3. The US decided to spend its way out of the recession and England decided to cut spending. Compare and contrast the two ways to deal with the recession: austerity or spending, reducing interest rates, and QE. Has there been a difference in GDP growth?
4. Is GDP really a good way to measure how well we are doing as a country? Yes or no and Why?
