Suppose Botswana’s nominal GDP increases from $200 billion in 1998 to $250 billion in 1999. a) Explain why these figures may present a misleading measure of economic growth. b) What alternative method would provide a more accurate measure of economic growth over time ?

Suppose Botswana’s nominal GDP increases from $200 billion in 1998 to $250 billion in 1999. a) Explain why these figures may present a misleading measure of economic growth. b) What alternative method would provide a more accurate measure of economic growth over time ?

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter7: Macroeconomic Measurements, Part Ii: Gdp And Real Gdp

Section: Chapter Questions

Problem 10WNG

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Suppose Botswana’s nominal GDP increases from $200 billion in 1998 to $250 billion in 1999.

a) Explain why these figures may present a misleading measure of economic growth.

b) What alternative method would provide a more accurate measure of economic growth over time ?

Definition Video Definition Overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period. Video

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Economic growth , which can be estimated in both real and nominal terms, exhibits an increment in overall production activities by an economy over the previous year. It can be evaluated by metrics like Gross domestic product and Gross national product.

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