Question
Development economists believe that Real GDP is a better measure of growth than nominal GDP. Using an example, explain why this is the case. For
Development economists believe that Real GDP is a better measure of growth than nominal GDP. Using an example, explain why this is the case.
For your example, you can consider 2 commodities and 2 years. The basic thing to show is why Real GDP measures growth better than nominal GDP.
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Microeconomics
Authors: David Besanko, Ronald Braeutigam
5th edition
1118572270, 978-1118799062, 1118799062, 978-1118572276
