Macroeconomics Discussion 1,2 - What is measured and, just as importantly

Macroeconomics

DQ1

• What is measured and, just as importantly, what is not measured?

• What has GDP been for the latest three quarters here in the US?

• Why is GDP mentioned in business news so often and used as an important metric for our economy? Is this number accurate? What are the pros and cons of this measurement?

• Explain how real GDP is different and how it is calculated.

DQ2

Prior to beginning work on this discussion,

• Read Chapter 8 of Macroeconomics: Private and Public Choice.

For this discussion, address the following questions:

• How is unemployment calculated, and what is and is not included?

• What were the unemployment numbers for the latest three quarters?

• Why is unemployment mentioned in business news so often and used as an important metric for our economy?

• What might cause the unemployment numbers to be questioned from an accuracy standpoint and a relevancy perspective?

• How is unemployment impacted by the phases of the business cycle?