ECON 104 Lecture Notes - Lecture 7: Gdp Deflator, Gross National Happiness, Gini Coefficient
Document Summary
Gdp is also frequently used as a measure of well-being. Usually measured at gdp per person or per capita. This tries to get a simple statistic to compare across countries. The value of leisure is not included in gdp. Gdp is not adjusted for social problems. Gdp does not include health measures like life expectancy. Gdp does not say how the pie is spilt up. 1% of the population could be an extreme outlier and 99% of the population could be much worse off yet the gdp is still high. Sees progression above gdp to measure overall well-being. Gdp is the market value of production prices can change so if price increases that doesn"t necessarily mean that production has also gone up. Gets rid of inflation aspect by adjusting for effects of price and inflation. Gdp values can be in what we call nominal or real values. Real values just mean that the value has been adjusted for inflation.
