Problems that Arise while Measuring Economic Growth - Essay Example

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This essay "Problems that Arise while Measuring Economic Growth" discusses the GDP growth rate in 2011’s second quarter that was 1.2%. in history, from 1959 to 2011, the average GDP of this nation was about 0.89% and it reached its maximum at 4.6% in the year 1976 and its lowest at -2.7% in the year 1974…

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Problems that Arise while Measuring Economic Growth

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Subject: Macro & Microeconomics
Type: Essay
Level: Ph.D.
Pages: 1 (250 words)
Downloads: 2
Author: mbotsford

Extract of sample "Problems that Arise while Measuring Economic Growth"

Globally, the process by which the wealth of a nation is determined or poverty is a complex task since there lies a predicament while trying to obtain the compatible types of data. Different nations may be having different data types and thus, comparison in performance fails to be objective at the end.

GDP as mentioned earlier is the method that is mostly used in the world to measure a country’s growth and Australia has followed this method as utilized by United Nations. This GDP method does not consider the incomes that come from corporations and individuals. This is especially if these incomes come from foreign sources and this approach further shows the weakness of measuring the growth of a nation.

The alternative method, (just to mention), that was usually used to measure an economy’s growth and that was applied universally in the world was GNI. The difference arises where GNI considers income from outside the country while GDP does not. (Kendall, 2010 p290)

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(“Economic growth is one of the macroeconomic objectives of the Essay”, n.d.)
Economic growth is one of the macroeconomic objectives of the Essay. Retrieved from https://studentshare.org/macro-microeconomics/1581815-economic-growth-is-one-of-the-macroeconomic-objectives-of-the-australian-government-outline-the-problems-that-arise-in-measuring-economic-growth

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