Macroeconomics / about GDP

Information

(by Ben Harris and Neil Mehrotra)

https://home.treasury.gov/news/featured-stories/measuring-the-strength-of-the-recovery

a) Why do the measures of GDP and GDI differ?

b) Do the graph and the table suggest that GDP and GDI have always moved in the same directions?

c) If GDI is a better real-time indicator of the state of the economy, is the recent behavior of GDI reassuring or discouraging?

d) Why using GDI, rather than GDP, causes a greater estimate of the growth rate in labor productivity between 2019Q4 and 2022Q1. Labor productivity is measured as the ratio between Y, which is either GDI or GDP, and N, the total number of hours worked per unit of time.

e) Does the table provide sufficient information to asses which of the two measures, GDI or GDP, produced a greater growth rate in total factor productivity between 2019Q4 and 2022Q1?