Why is GDP not an accurate measure of economic growth?

GDP is a monetary value, it is the "total money value of all final goods and services produced in an economy in one year," therefore it fails to take into consideration any social indicators, whereby the well-being of one society is not taken into consideration. Because it is a quantitative value, and because it fails to take into account social indicators, it is argued that GDP is not an accurate measure, whereby society is made of much more than the total of all economic activity.

MA
Answered by Muna A. Economics tutor

20195 Views

See similar Economics IB tutors

Related Economics IB answers

All answers ▸

What are the non-price determinants of demand?


Explain the meaning of the law of demand, and using examples and diagrams, distinguish between movements along and shifts of the demand curve.


Explain one reason why governments impose indirect taxes.


Explain what is meant by PED (Price elasticity of demand)


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2026 by IXL Learning