4 ms·
At least in theory no, because GDP growth calculation is inflation-adjusted. If lots of gadgets get a lower price because of lower costs, but with the same feat
by danmaz74 10y ago
At least in theory no, because GDP growth calculation is inflation-adjusted. If lots of gadgets get a lower price because of lower costs, but with the same features/performance, then this should be accounted for in the GDP deflator [1] and be neutral to GDP growth accounting. Of course, correctly estimating the GDP deflator in practice is very difficult.
[1]https://en.wikipedia.org/wiki/GDP_deflator https://en.wikipedia.org/wiki/GDP_deflator