Increases in real GDP are often interpreted as increases in welfare. What are some problems
with this interpretation? Which do you think is the biggest problem with it, and why?
Answers
Answered by
5
Answer:
there are four problems with this interpretation
1.distribution of income : if distribution of income tones unequal GDP growth fails to reflect arising social welfare
2.composition of GDP : composition of GDP may not be welfare oriented
3.non monetary exchanges : non monetary exchanges are not recorded to calculate GDP
4.externalities : externalities refers to good and bad impact of an economic activity without paying the price or penalty for that
plz mark it as brainliest answer if u find it helpful
Read more on Brainly.in - https://brainly.in/question/8762501#readmore
Similar questions
Math,
4 months ago
Science,
4 months ago
History,
4 months ago
Math,
11 months ago
Political Science,
11 months ago