Economic Indicators and the Business Cycle

Externalities

Population size

Economic growth

Industrial output

As it includes all financial transactions regardless of product changes.

Since it counts only new innovations but ignores existing product improvements.

It mainly measures quantity, not quality enhancements or variation in goods and services.

Because only non-durable goods are counted in its calculation.

Environmental quality and sustainability.

Overall levels of government spending.

Net exports of goods and services.

Total nationwide consumption and investment.

Non-discretionary (or automatic stabilizers)

Cyclical adjustment policy

Discretionary expansionary policy

Discretionary contractionary policy

Imported goods consumption.

Leisure time.

Government tax revenues.

Domestic financial investment.

Increasing transfer payments

Decreasing taxes

Increasing subsidies

Increasing taxes

The environmental costs are not captured by current measures of output.

The environmental costs are captured by current measures of output.

The failure to comprehend future expenses or reduced quality of life is captured by current measures of output.

Environmental degradation may lead to future expenses or reduced quality of life that won't be captured by current measures of output.

It does not account for household labor or volunteer work that contribute to societal welfare but have no market price.

Such exclusions help focus solely on commercial productivity thus providing a clearer picture of economic welfare through GDP analysis.

Only government expenditures compensate for any missing non-market transaction effects on well-being measurements via GDP.

Non-market transactions are fully accounted for using shadow pricing techniques in modern economies' GDPSs.

The nation is facing a deficit in capital and financial accounts balancing trade flows.

Domestic investment opportunities are becoming less attractive compared to overseas options.

The country is exporting more than it imports, accumulating wealth from abroad.

Consumer spending within the country is outpacing production leading to inflationary pressures.

Gross Domestic Product adjusts seamlessly between different currencies making international comparisons straightforward without limitations.

Comparisons are unaffected since Gross Domestic Product naturally includes adjustments for cost-of-living variations country by country.

It fails to account for income distribution differences within countries that could impact citizens' lived experiences significantly.

Gross Domestic Products captures all aspects necessary for meaningful quality-of-life comparisons such as setting social progress metrics aside from mere economic activity.