New answers tagged government-spending
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votes
Macroeconomics - Does GDP undervalue government produced goods and services?
No it doesn't. If the government can build the bridge more efficiently, because it does not require profit, then the 10 million in your example is the correct added value.
The GDP is build on the idea ...
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Macroeconomics - Does GDP undervalue government produced goods and services?
Your arguments are not correct if we talk about 'correctly' valuing goods or services. For a second forget about government provided goods and lets apply the same argument just to private consumption ...
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