me: >> how do you define "relevant"? with either the new or the old GDP >> measure, the number presents only production that's sold through the >> market, ignoring non-market costs and benefits.
raghu: > "Relevant" in the sense that there is a reason someone should care that the > GDP growth rate is 1% or 2%. > > The unemployment rate - for all its methodological flaws - is relevant in > this sense. As is inflation. I am not so sure about GDP. the two are linked, by Okun's "law." If the market economy (as measured using the old GDP) grows fast enough in real terms to cancel out the normal increase in unemployment due to labor force growth and labor productivity increases, the official (U3) unemployment rate falls. If it grows slowly or falls, U3 rises. -- Jim Devine / "Reality is that which, when you stop believing in it, doesn't go away." -- Philip K. Dick _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
