Why is it important to adjust the Gross Domestic Product figure?

      

Why is it important to adjust the Gross Domestic Product figure?

  

Answers


Dana
Since Gross Domestic Product is based on the monetary value of the output of the economy, GDP is thus subject to inflationary pressure because over a period of time, prices typically go up in an economy and that will be reflected in the GDP figure thus by just looking at the GDP of the economy, it is sometimes difficult to tell whether the GDP figure increased due to inflation or increase in production.
Dana05 answered the question on July 3, 2019 at 10:59


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