Macroeconomics Assignment

2.1 Discuss and give examples of measurement and conceptual problems in using nominal versus real values to measure economic performance and of economic well-being. What does the Consumer Price Index (CPI) do a good job of measuring, and what is not included? What does Gross Domestic Product (GDP) do a good job of measuring, and what is not included in the measurement of that economic indicator? 2.2 There is a chart in 6.4 Comparing GDP among Countries that compares the specific per capita income of the selected countries, Table 6.9. What can you infer about the standard of living in United States versus that of China, Brazil or India? What could you infer about comparable cost of living in each of these locations?

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