Question

please answer the following discussion questions each bulleted list is a question in need of a response. please and thank you so much.

Much of macroeconomics focuses on changes in GDP, and studying macroeconomics may lead you to conclude that "decreases in GDP are bad" and "increases in GDP are good." Think critically about this and then discuss based on the following prompts. • Give an environmental reason for why an increase in GDP can be a bad thing. • Give a reason, based on deflation, for why a decrease in GDP could be a good thing. • Since the U.S. economy emerged from the recession of 2007-2009, real GDP has increased. With that in mind, has anyone suffered during this time that the economy, as a whole, was prospering? If so, who?

Answer 1

PAGE No:-02 13 Give an environmental reason for why an increase in GAP can be 7 a bad thing ? I Ans : Only Growth in the form of monetary value is not sufficient for society as country sustainable Growth and other human he environmental values also matters. In simple words we can say that Growth in monetary terms twill turned as a great threat to the society => Enveronmental Concerns :- Oj Fast growth can create negative externalities 49noise pollution, and lower air quality arising from air pollution and road congektion. cü Increased consumption of de-merit good's which damage social welfare c) The huge increase in household and indus Erial waste. These Vexternalities seduice social welfare and can lead to market failure. __ e Growth that leads to environmental damage may lowes the sees tainable sake of growth. Examples) inclode the destruction of rain forests through deforestation, the over exploitation and loss of natural habitat and bio-diversity from the construction of new road, Hotels, o malls and illustrial estates,”

PAGE.NO:-02 => Give a reason based on defeation, for why a decrease in GDP cauld be a good things": Ans: We know th Economic growth on increase in GDP means an increase in national income national output. If we have shower rate of economic growth living standards will increase at a shower rate But ane the other hand low GDP an decrease in GDP is also to be beneficial -things: - Benefits of decrease in GOP :- cig Environment :- With lower rate of economic growth and lower rate of increasing nationde output it will be easier to meet targets for reducing carbon emissions. If growth is very rapid!, there is more pressure to produce quick and cheap energy, which may require burning fossil fuels. Lower rate of economic growth give mode chance to shifts to renewable energy It also slow down rate of consuming non-renewable energy. W Lower inflation - With lower GDP, there is less inflationary pressures. This means the central Bank can keep interest rate lower, which is good for borrowers, mortgage holders and the government selling O bonds. Low information creates the stabietty which may encourage more investment,

PAGE NO :-03 . =) Ans: i Since the Us. economy emerged from the recession of 2007-2009, seal GDP has increased with the Din mind, has anyone suffered during this time that the economy as a whole, Pas properind? If so, who? As such after recession of 2007-09, when U.S economy in boosting stage no one can suffered as whole but it leads to developed some disparities among the society : Difference by Gender: At the onset of the Great Recession the unemployment rate increased more for men than nomen However, this gencer dynamics was reversed as the economy started gaining at that time man have gained more! jobs thah walthen in the first two years of recovery which gives rise to Gender inequality. Difference by Race and Ethnicity: The Great Recession hit out a lot especially whites people But during the growth period non-brite a Rit badly. Younder less educated and miniority workers were more likely than whiter to to lose their jobs. After some time they got jobs but experienced large in drops in wages, salaries. It created mequalities among the societies. co Thanks TABASSUM RZ2V1