Why Does Inflation Make Nominal GDP a Poor Measure of the Increase

question 71

Essay

Why does inflation make nominal GDP a poor measure of the increase in total production from one year to the next?

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Definitions:

U.S. Courts of Appeals

Intermediate appellate courts in the United States federal court system that review decisions of trial courts.

Federal Courts

Courts established under the federal Constitution or laws of the United States, having jurisdiction over matters of federal law.

U.S. Supreme Court

The highest court in the United States, with ultimate appellate jurisdiction over all federal and state courts, interpreting the constitutionality of laws.

Jury Trial

A legal proceeding in which a jury makes a decision or findings of fact, which then guide the actions of a judge.