Question

Why are economists always so concerned with GDP? GDP predicts what will happen next year. GDP is the most accurate way to determine if the economy is performing well. GDP is the basis of all tax systems. GDP is used to determine how many electoral votes each state has.

Answer 1

The correct answer is that the GDP is the most accurate way to determine if the economy is performing well. The only downside to the GDP is that it doens't show whether the standard of living has improved along with the economy since it is possible for countries to have high GDP due to large scale manufacturares and producers, yet for the people to still be poor because of low incomes from the said company owners.