GDP is not the perfect measure of development because in many cases the GDP of a country may be increasing even though development is not. This can be due to inflation. As the prices of goods rise, GDP will also rise however, this does not mean that production or the standard of living is also increasing. This is known as Nominal GDP.
To get a better understanding of whether a country is developing, one must consider the Real GDP of that country. Real GDP involves using base prices from a specified year in the past to calculate the current GDP. This allows us to overcome inflation and compare the GDP of a country for two different years to find out if production has actually increased or not.
Ofcourse, there are many other factors that go into whether a country is experiencing an increase in the standard of living such as overall happiness of the people in the country.
what are the strengths and weakenesses of gross domestic product
The advantages of using GDP as a measure of productivity and economic health is that GDP is universal and can be used to measure an economy's growth or decline. The disadvantage of using GDP as a measure of productivity and economic health is that it does not effectively measure the quality of products.
no
The GDP per capita is used to measure a country's standard of living. It is calculated by dividing the country's GDP by its population, which better allows comparison of GDP between countries.
GDP Gap measures the percent difference in Real and Potential GDP
what are the strengths and weakenesses of gross domestic product
The advantages of using GDP as a measure of productivity and economic health is that GDP is universal and can be used to measure an economy's growth or decline. The disadvantage of using GDP as a measure of productivity and economic health is that it does not effectively measure the quality of products.
no
The GDP per capita is used to measure a country's standard of living. It is calculated by dividing the country's GDP by its population, which better allows comparison of GDP between countries.
GDP Gap measures the percent difference in Real and Potential GDP
GDP birth
GDP..
GDP.. this is the answer.
Macroeconomic cost of unemployment
Because it takes into account of non-material standard of living while GDP per capita only measures the material standard of living. HDI takes into account of Life expectancy, Literacy rate and GDP/capita.
Would you say that real GDP per person is a useful measure of economic well-being ?Defend your answer.
Economic growth is defined by increases in GDP. Whereas, economic development is more of a vague measure usually encorporating social measures such as literacy rates or life expectancy as a means of measuring a country's level of development.