Explain the difference between nominal and real GDP. How are they measured and what is their usefulness in indicating economic performance? Why is the Real Gross Domestic Product (GDP) a more accurate measure of economic growth compared to the nominal GDP?
GDP isn't adjusted for pollution costs. If two economies have the same GDP per capita, but one has polluted air and water while the other doesn't, well-being will be different but GDP per capita won't capture it. The Davos discussion, however, is pointed at a different flaw in measur...
If we want to measure an economy's output, why is real GDP a better measurement than nominal GDP? List some of the reasons why economists should not consider GDP an effective measure of the standard of living in a county. a. What is GDP? b. Describe the t...
In China, the demographic change is accompanied by a significant surge in investment in talent and innovation. China's R&D workforce, measured in full-time equivalents, has grown 10-fold from 1991 to 2023, maintaining its position as the global leader for 11 consecutive years. Meanwhile, R&D ...
A recent report from the Carnegie Endowment for International Peace revealed that since 2000, the G7's share of global GDP, as measured by purchasing power parity, has declined from 43 to 30 percent, while that of the five original BRICS countries has increased from just over 21 percent to...
A recent report from the Carnegie Endowment for International Peace revealed that since 2000, the G7's share of global GDP, as measured by purchasing power parity, has declined from 43 to 30 percent, while that of the five original BRICS countries has increased from just over 21 percent to...
Kuznets' warning has been ignored. We live in a world where GDP is the benchmark of success in a global economy. Markets move and trillions of dollars of capital move around the world based on which countries are going up and which countries are going down, all measured in GDP. Our soci...
the UK is one of the poorest performers in ensuring that economic growth is translated into meaningful improvements for its citizens. Rather than just focusing on GDP, over 40 different sets of criteria from health, education and civil society engagement have been measu...
Economic health, as measured by changes in the GDP, matters a lot for the prices of financial assets. Because stronger economic growth tends to translate into higher corporate profits and investor risk appetite, it is positively correlated with share prices. Conversely, stronger GDP growth can hurt...
Core inflation is measured by both the CPI and thecore personal consumption expenditures (PCE) index. The PCE represents the prices of goods and services purchased by consumers in the U.S. Since inflation is a measure of the trend in rising prices, PCE is an important metric in determining ...