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Chapter 8: Q.2 - Critical Thinking Questions (page 182)

Why do you suppose that many economists worry that including the degree of depletion or pollution of natural resources could make the value of GDP harder to interpret?

Short Answer

Expert verified

A portion of the business analysts disagrees with adding regular asset exhaustion into GDP. Integrating ecological qualities in determining, evaluating, and making strategies for the country presents considerable difficulties.

Step by step solution

01

introduction

The regular assets are esteemed by humans as a gauge, so it is an emotional matter. The perspective of a portion of the market analysts is that changing over normal assets into financial worth has neither rhyme nor reason.

02

explanation

a portion of the exhaustion of regular assets like underground water, and ozone layer consumption estimating these sorts of normal assets is impossible for us. We can expect an incentive for these sorts of things subsequently adding these things into the GDP makes it exceptionally difficult to decipher.

Adding the upsides of regular asset consumption makes the GDP estimation truly challenging and makes it exceptionally difficult to decipher

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