Learning Journal Activity:Part 1

P 2015 2020 2021
Product	Quantity	Price	Quantity	Price	Quantity	Price
MP3s	40	$250.00	45	$200.00	50	$150.00
Tacos	2,000	2.00	2,200	2.25	2,300	2.40
Coats	300	50.00	310	52.00	350	55.00

Real GDP is an important, although imperfect, indicator of the economic health of a nation. Consider the data above for a simple economy: Using 2015 as the base year, calculate nominal GDP and the real GDP, for 2020 and 2021. Show your work. Part 2Gross Domestic Product (GDP) is the broadest measure of output for an economy. However, GDP does not perfectly measure the well-being of a nation and its citizens' welfare.

• Discuss what GDP is and what it measures. Discuss 4 shortcomings (limitations) of GDP as a measure of well-being and welfare.