Limitations of GDP as an Indicator of Welfare

Gross Domestic Product (GDP) is essentially an indicator of aggregate economic activity. In addition to that, it is also frequently used to describe social welfare in an economy. The idea behind this is that GDP tends to correlate with consumption, which in turn is commonly used as a proxy for […]

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Gross Domestic Product (GDP)

The Gross Domestic Product, also known as GDP, is arguably the most common indicator to describe a country’s economic performance (see also the world’s top 10 countries by GDP). Generally speaking, it measures the total value of all goods and services produced in an economy over a set period of […]

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