Inflation

Why is unexpected inflation a societal problem?
Unexpected inflation is a problem because it lowers people's persception of wealth, and includes them spending less money.  Most people dont take into account inflation whent they go to the supermarket and want to buy groceries, instead sometimes they dont buy anything because they believe that the price is too high.  Becuase people then begin spending less the economy doesnt flow as well as before. Also, when people give loans with interest in a time and the inflation rate goes up, the people who lent end up losing money even if there is an interest rate, unless the interest rate is higher than the inflation rate.

GDP

What does GDP measure and is it an accurate macroeconomic indicator?

GDP - Gross Domestic Product measures the wealth of a country according to the amount that is produced and consumed in the market.  It only measures actions if they affect the economic market, such as buying goods or working for an employer.  It takes into account inflation, but does not measure the amount of polution, happiness and demolition.  It does not have a  moral compass, it is just a number, a statistic.  Because of this, it is a macroeconomic indicator, because from a standpoint of looking at the affects of choices, GDP is merely a number and constitutes scarcity or incentives.  It is the choices of buying or selling that creates the GDP, however a decision or many descisions cannot be isolated from the GDP.