You have learned about nominal GDP and real GDP and the limitation of GDP in measuring economic well-being. Now read the article titled "When Real is Nominal and Nominal Real: The World of Falling Prices" by Noriko Hama inThe Japan Times Online, then answer the following questions. Post your responses and thoughts to the discussion forum.

Questions

• At what rate was Japan's real GDP growing for the July-September quarter?
• Why did the author question whether the Japanese economy was growing or not?
• How would falling prices (deflation) affect our use of real GDP per person as the main indicator of the average person's standard of living?
• Would the use of nominal GDP per person be a better indicator?