BBM202: Though most countries in the world use the Gross Domestic Product (GDP) as an indicator of the well-being of the nation: Macroeconomics Assignment, WOU, Malaysia

University Wawasan Open University (WOU)
Subject BBM202: Macroeconomics

Question 1

Though most countries in the world use the Gross Domestic Product (GDP) as an indicator of the well-being of the nation, the indicator has its own set of issues. Explain why GDP is often not considered the best indicator to measure well-being.

Question 2

Using appropriate examples, explain two main types of unemployment that usually occurs in Malaysia.

Question 3

Using the AD-AS diagram, explain the effect of the following on price and real
income.

  • Prediction of World War 3 next year
  • Consumers are optimistic about the economy
  • The government has increased sales and service tax
  • The minimum age for working has been reduced

Question 4

There are three main types of foreign exchange rate systems used globally. Explain all three of them and also indicate which countries use them.

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