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Measure the wellbeing of society

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What is the main reason why economists would like to use the real wage when looking at changes over time?

Why do economists use GDP to measure the wellbeing of society? Is this the best way to do so?

From a macroeconomic perspective, why is deflation so bad? Please refer to consumer behavior and the corresponding behavior of firms in a deflationary environment.

Discuss the fact that persistent deflation is the central bank's worst nightmare. Why is this environment such a nightmare for the central bank and monetary policy? Explain using the Fisher equation for the real rate of interest and refer to both the ex-post and ex-ante real rate of interest.

Reference no: EM132786666

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