There Are a Number of Measures of Aggregate Economic Activity

question 3

Essay

There are a number of measures of aggregate economic activity, such as GDP, GNP, national income, personal income, and disposable personal income. Each of these measures can be a good indicator depending on the issue under consideration. For each of the following issues,
give your reasons for selecting one of the measures just mentioned as the best indicator to use in studying the issue:
a. the proportion of income households save;
b. the relative share of earnings going to labor versus capital;
c. the total output of new final goods and services.

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Definitions:

Defendant

An individual, company, or institution sued or accused in a court of law.

Civil Lawsuit

A legal proceeding initiated by one party against another over a civil matter, such as contracts, torts, or property disputes.

Criminal Prosecution

The process by which a person is charged, tried, and possibly convicted by the judicial system for a crime.

Mediation

A type of dispute resolution where the parties to a lawsuit meet with a neutral third party (the mediator) in an effort to settle the case. The mediator’s job is to listen to the evidence, help the litigants come to understand each other’s viewpoint regarding the controversy, and then facilitate the negotiation of a voluntary resolution to the case. Mediation is not binding on the parties.