Answer to Question #170906 in Macroeconomics for Abe

Question

1.   Which of the three uses of GDP data was applied in each case described below?

 

a.  In 2011, many analysts claimed that the economy of India began slowing as GDP growth declined from 8.4% in 2010 to 6.9% in mid-2011.

b.   Nicaragua and Haiti are the poorest nations in the Western Hemisphere, with annual

2013 per capita GDP of only $1,851 and $820, respectively.

c.  The economy of Italy has slowed considerably over the past two decades, as evidenced by an average growth of real GDP of only 1.25% per year from 1990 to 2010.

Answer 1

a) . In 2011, many analysts claimed that the economy of India began slowing as GDP growth declined from 8.4% in 2010 to 6.9% in mid-2011(Used to predict short term economic fluctuations).

b) . Nicaragua and Haiti are the poorest nations in the Western Hemisphere, with annual 2013 per capita GDP of only $1,851 and $820, respectively(it's an indicator of general health of the economy).

c) . The economy of Italy has slowed considerably over the past two decades, as evidenced by an average growth of real GDP of only 1.25% per year from 1990 to 2010(gives information about the size of the economy showing how an economy is performing).