Economics G.D.P Vs. G.P.I.

Evaluating Our Economy When economists study the markets of the United States, they must use certain criteria to judge their performance. They use those principles to determine if the economy is stable, slumping, or if it’s growing. One tool economist use is the Gross Domestic Product. This is a measurement of money spent on goods and services purchased by households, businesses, and governments. Some look at a relatively new aspect of measuring economic prosperity, …showed first 75 words of 757 total…

…showed last 75 words of 757 total…much better look at the current economic situation. In addition, G.P.I. considers affects on the environment, whereas, G.D.P, simply includes pollution cleanup as an increase in economic activity. As stated earlier, the G.D.P. was never intended to be a measure of economic progress, but was “designed as a planning tool to guide the massive production effort for World War II”(Cobb), so why should we still use it today?