Real GDP: The Flawed Metric at the Heart of Macroeconomics

Blair Fix, Jonathan Nitzan and Shimshon Bichler The study of economic growth is central to macroeconomics. More than anything else, macroeconomists are concerned with finding policies that encourage growth. And by ‘growth’, they mean the ­growth of real GDP. This measure has become so central to macroeconomics that few economists question its validity. Our intention […]

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