Assignment This assignment addresses how economists measure various nations' economies using measures such as Gross Domestic Product (GDP). In doing so, it highlights the various components of the GDP, the difference between nominal and real GDP, and the limitations of the GDP as a measure of national income. 1) U.S. real GDP is substantially higher today than it was 60 years ago. What does this tell you, and what does it not tell you, about the well-being of U.S. residents? What are the limitations of the GDP as a measure of economic well-being? Given the limitations, why is GDP usually regarded as the best single measure of a society's economic well-being? (Enter response here.) 2) What is an intermediate good? How does an intermediate good differ from a final good? Explain why the value of intermediate goods produced and sold during the year is not included directly as part of GDP. Explain why the value of intermediate goods produced and not sold is included directly as part of GDP. (Enter response here.) 3) GDP is defined as the market value of all final goods and services produced within a country in a given period of time. As we covered in the previous question, intermediate goods are not included in GDP. However, that is not the only production that is left out of GDP. Explain why some final goods and services, other than intermediate goods, are not included in GDP (Enter response here.)4) The table below contains hypothetical data for country A for a given year. Country A's Goods and Services Total Household purchases of durable goods $1293 Household purchases of nondurable goods $1717 Household purchases of service: $301 Household purchases of new housing 3704 Purchases of capital equipment $310 Inventory changes 5374 Purchases of new structures $611 Depreciation $117 Salaries of goverment workers $1422 Government expenditures on public works 5553 Transfer payments $777 Foreign purchases of domestically produced goode Domestic purchases of foreign goods $120 Refer to the Table above to answer the following questions. Be sure to show all of your calculations. a What was country A's GDP? (Enter response here.) b. What was country A's consumption? (Enter response here.) What was country A's investment? (Enter response here.) d. What were country A's government purchases?