After reading this article by Kel Kelly, I am thoroughly convinced that: all prices cannot rise at the same time unless the money supply increases or the production of goods and services decreases in a given economy and, therefore, the $ value of GDP cannot increase unless the supply of $ incr…

Here is an example of other ways people have tried to quantify ‘growth’… http://cowles.econ.yale.edu/P/cp/p09b/p0957.pdf Do Real Output and Real Wage Measures Capture Reality? The History of Lighting Suggests Not. by WD Nordhaus - 1994

The two articles (Frank Shostak and Kel Kelly) and the video make a lot of sense to me. I really like the Frank Shostak article. They are giving me further foundation to believe that GDP and price indices which attempt to make measurements with accuracy to a decimal place are meaningless. I particu…

Seeing what has been posted here, I believe we are in agreement that real GDP is a very poor and inaccurate measure for material wealth, i.e. the production of goods and services. But do we leave it by saying that there is no measure for a nation’s income or production of goods and services? Do we …

OH COME on JH2011 . Macroeconomic indicators are important for individuals. Models are important in the practical world, maybe it works differently in the purely theoretical and aprioritic mind of die hard misesians though. Would you prefer to live in canada or spain if shtf in your home country? Th…

I’m having trouble seeing how your response is relevant to anything that we previously said in this post. We are addressing the issue that real GDP does not mean the same thing as material wealth. You referenced “macroeconomic indicators” and “aggregate growth and indicators.” The point of this po…

I will free ride on this topic to talk about a related project of mine. Hope you don’t mind :slight_smile: Then again, my english is crap, please, don’t kill yourself. I was thinking about doing my project on economics using a modified “Fishermen parable” as a model to understand the meaning and sh…

But what about real and nominal GDP growth then? It can’t be the same

A point I would like to add to this discussion: Strictly speaking an increase in the supply of money isn’t the only way GDP rises. Since GDP is essentially a yearly tally of all incomes in a given country it can also rise if the number of transactions within that given time period increases. Put an…

+1 ThreeTrees GDP can rise due to increased “velocity of money” - what is absolutely not clear to me at all is how increases in the velocity of money are necessarily a good thing, a tenet of faith of the orthodoxy. Inefficiently small transactions could be a sign of economic discoordination, for ex…

Question about GDP

Economics Economics Questions

John_James January 3, 2012, 2:26pm 2

You’re so on the right track.

Check here for a brief post on this. There’s also a couple of links to articles (another by Kel Kelly) that go into it.

Also there’s this:

The Multiplier Effect

Measures of economic health/growth

government spending as a percentage of GDP?

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Question about GDP

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