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Reaction i will post the steps - Term Paper Example

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Oulton argues that GDP is a component of welfare as well as an indicator of welfare and therefore factors in welfare issues into economic policies. Examples of the welfare…
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Download file to see previous pages GDP is also an indicator of people’s level of happiness and satisfaction and this justifies its application in informing economic policies that relate to welfare (Oulton, 2012).
Opponents of the application of GDP in informing economic decisions however downplay these augments. Stiglitz notes that statistics have failed in accuracy and this problem has been evident in economics. Differences in opinions and demands over GDP also mean that its value and meaning are not absolute among different stakeholders. Another challenge to application of GDP is its lack of basis for measuring all outputs and inability to measure government output is an example. Results of government outputs are also unreliable and GDP fails to measure such aspects as depletion of natural resources. These, according to the author, undermine validity of GDP and its potential applications in policymaking (Stiglitz, 2009).
Stiglitz, J. (2009). The great GDP swindle: Chasing GDP growth results in lower living standards. Better indicators are needed to capture well-being and sustainability. The Guardian. Retrieved from: ...Download file to see next pagesRead More
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