Tag Archives: Subtractions

As such, they probably should be subtracted from real GDP to get to a better measure of the final goods relevant to individuals, but the government statisticians won’t hear of it. It is also important to recognize that our urbanized, industrialized society has some drawbacks. Big cities make large-scale commercial activities (and thus more market goods) feasible. Read More →

If we were able to adjust for the items mentioned in the previous section, we might agree that we have a solid measure of real GDP. Nevertheless, we might also feel that we should make some adjustments to real GDP to get a more accurate notion of the level of our material standard of living. Read More →