Question
Economists normally talk about GDP even though they know NDP is a better measure of economic activity. Why? LO3
Step 1
Gross Domestic Product (GDP) is the total market value of all final goods and services produced within a country in a given period. Net Domestic Product (NDP) is GDP minus depreciation (also known as capital consumption allowance), which accounts for the loss of Show more…
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Why do economists use real GDP rather than nominal GDP to gauge economic well-being?
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