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Gdp measurement
What Challenges Arise in Measuring Informal Economic Activities?
November 21, 2023
How does the informal economy impact measured economic growth?
The informal economy, comprising unregistered or untaxed economic activities, presents challenges in accurately measuring economic growth. Since such activities often go unrecorded, official measures like Gross Domestic Product (GDP) may underestimate the true economic output. Additionally, the informal sector's volatility and lack of regulation can affect economic stability and policy planning.
Tags : Informal Economy , GDP Measurement , Economic IndicatorsAssessing the Impact of Inflation on GDP Accuracy
December 2, 2023
How does inflation affect the accuracy of GDP measurements?
Inflation can distort GDP measurements by inflating nominal values, leading to an overestimation of economic output. Adjusting GDP for inflation using real GDP allows for a more accurate assessment of actual economic growth, excluding the effects of price changes.
Tags : Inflation , GDP Measurement , Economic Indicators