A more arcane but incredibly important area of economics, that - TopicsExpress



          

A more arcane but incredibly important area of economics, that gets overlooked, is how to measure GDP. The classical example goes like this. Assume you have two guys who live in a country and each guy has $100. The first offers to pay the second guy $100 to dig a hole. The second guy tired from digging the hole, offer the first guy $100 to fill the hole back up. According to economic accounting, this accounts for $200 of GDP even if nothing was actually accomplished.
Posted on: Fri, 11 Apr 2014 10:06:26 +0000

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