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"Why Do We Do Natural Experiments?" Asks a Student

question 49

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"Why do we do natural experiments?" asks a student. "After all, each disaster that causes a natural experiment is unique." A good answer would be, "Using natural experiments, researchers have learned quite a lot about:


Definitions:

GDP Deflator

An economic metric that converts the money-value measure of GDP into an index for quantity comparison by deflating price inflation.

Real GDP

The calculation of a nation's economic production, accounting for variations in prices due to inflation or deflation, to represent the actual value of goods and services generated.

Real Terms

Adjusted for inflation, reflecting the actual purchasing power of money.

Real GDP Per Capita

A measure that adjusts Gross Domestic Product (GDP) for inflation and divides it by the total population, reflecting the average economic output per person.

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