8.Real because Disney. This corresponds to a deerease in economi well-being beecause the income of workers and shareholders of Disney falls(the income side of the national accounts),and people's consumption of Disney falls(the expenditure side of the national accounts). b.Real GDP rises because the original capital and labor in farm production now ce more wheat.This corresponds to an increase in a the eco ono well-being ofsociety,since people can now consume more wheat.(If people do not want to consume more wheat,then farmers and farmland can be shifted to producing other goods that society values.) c.Real GDP falls because with fewer workers on the iob.firms produce less.This tely eea fall inm well-being the firms that lay off workers produce less.This decreases economic well-being because workers'incomes fall(the income side), and there are fewer goods for people to buy(the expenditure side). e.Real GDP is likely to fall,as firms shift toward production methods that roduce fewer goods but well-beingwever,my ise.The e ecor my now produc s less measured output but more clean air;clea air is nottraded in markets and,thus,does not show up in measured GDP,but is nevertheless a good that people value. f.Real GDP rises because the high-school students go from an activity in which they are not producing market goods and services to one in which they are. Economi -being,h wever,may de crease.In ideal natio al accou school would show up as investment because it presumably increases the future productivity of the worker.Actual national accounts do not measure this type of invest ment.Note also that future GDP may be lower than it would be if the students staved in schooLsince the future work force will be less educated. g.Measured real GDP falls because fathers spend less time produ market ods and serv .The actual production of goods and services need I not have fallen however.Measured production(what the fathers are paid to do)falls,but unmeasured production of child-rearing services rises. 9.In a speech that Senator Robert Kennedy gave when he was running for 1068he aid the follo bout GDP:[It]doe for the en,the quality of their education,the joy of their play.I does not include the beauty of our poetry or the strength of our marriages,the intelligence of our public debate or the integrity of our public officials.It measures neither our courage.nor our wisdom.nor our devotion to our country It me ever n short.ex ept that which akes rthwhile,and it can tell us everything about America except why we are proud tha t we a Americans.Was Robert Kennedy right?If so,why do we care about GDP 9.As Senator robert kennedy pointed outGDP is an imperfect measure of economic performance or well-being.In addition to the left-out items that8.a.Real GDP falls because Disney does not produce any services while it is closed. This corresponds to a decrease in economic well-being because the income of workers and shareholders of Disney falls(the income side of the national accounts), and people’s consumption of Disney falls(the expenditure side of the national accounts). b.Real GDP rises because the original capital and labor in farm production now produce more wheat.This corresponds to an increase in the economic well-being ofsociety,since people can now consume more wheat.(If people do not want to consume more wheat,then farmers and farmland can be shifted to producing other goods that society values.) c.Real GDP falls because with fewer workers on the job,firms produce less.This accurately reflects a fall in economic well-being. d.Real GDP falls because the firms that lay off workers produce less.This decreases economic well-being because workers’incomes fall(the income side), and there are fewer goods for people to buy(the expenditure side). e.Real GDP is likely to fall,as firms shift toward production methods that produce fewer goods but emit less pollution.Economic well-being,however,may rise.The economy now produces less measured output but more clean air;clean air is nottraded in markets and,thus,does not show up in measured GDP,but is nevertheless a good that people value. f.Real GDP rises because the high-school students go from an activity in which they are not producing market goods and services to one in which they are. Economic well-being,however,may decrease.In ideal national accounts,attending school would show up as investment because it presumably increases the future productivity of the worker.Actual national accounts do not measure this type of invest ment.Note also that future GDP may be lower than it would be if the students stayed in school,since the future work force will be less educated. g.Measured real GDP falls because fathers spend less time producing market goods and services.The actual production of goods and services need not have fallen however.Measured production(what the fathers are paid to do)falls,but unmeasured production of child-rearing services rises. 9. In a speech that Senator Robert Kennedy gave when he was running for president in 1968, he said the following about GDP: [It]does not allow for the health of our children, the quality of their education,or the joy of their play. It does not include the beauty of our poetry or the strength of our marriages, the intelligence of our public debate or the integrity of our public officials. It measures neither our courage, nor our wisdom,nor our devotion to our country. It measures everything,in short,except that which makes life worthwhile,and it can tell us everything about America except why we are proud that we are Americans. Was Robert Kennedy right?If so, why do we care about GDP? 9.As Senator Robert Kennedy pointed out,GDP is an imperfect measure of economic performance or well-being.In addition to the left-out items that