Canada's economy has realized significant economic growth in the last 50 or so years.Still, there are some items missing in our growth calculations that might impact our standard of living.List three of them and describe how their inclusion might modify our interpretation of economic growth statistics.

Question

Quizplus · Accepted Answer

The Answer is Economic growth is based upon the growth rate in real GDP or real GDP per capita.Our GDP calculations miss some important items that can change when GDP grows.For instance, improved product quality and services, and increases in available leisure time are associated with GDP growth and certainly improve our standard of living.However, these improvements are not included in economic growth statistics meaning that these growth statistics understate the gain in economic well-being.
On the other hand, economic growth may have negative effects upon our environment and can lead to a decline in quality of life.In this case, economic growth statistics overstate the gain in economic well-being.

Canada's Economy Has Realized Significant Economic Growth in the Last