Posted: May 24th, 2016

Why does inflation make nominal GDP a poor measure of the increase in total production from one year to the next?

Why does inflation make nominal GDP a poor measure of the increase in total production from one year to the next? When measuring real GDP, what does the term ‘chain volume measures’ refer to? Give reasons why measured GDP does not reflect total production in an economy.
3. What factors determine labour productivity? Outline the various actions the government sector should take to promote growth.