Why do economists measure growth in real terms as opposed to nominal terms? Explain why real GDP a useful and important measure of a nation’s economic health? Who uses this information?
Why do economists measure growth in real terms as opposed to nominal terms? Explain why real GDP a useful and important measure of a nation’s economic health? Who uses this information?
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter17: Economic Growth: Resources, Technology, Ideas And Institutions
Section: Chapter Questions
Problem 3QP
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Why do economists measure growth in real terms as opposed to nominal terms? Explain why real
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Step 1- Introduction
The economics as a study is based upon the basic and the most important idea of scarcity. The resources which are present with each and every economy around the globe tend to be limited in nature. The wants on the other hand are limitless. This results into making of choices, and the economies have to use these resources in the most optimal way.
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