Suppose the equilibrium aggregate price level is rising and the equilibrium level of real GDP is falling The labor unions successfully negotiate an increase in nominal wages for their workers.
Many national and international economic groups keep track of GDP definitions. The GDP is defined by the Organisation for Economic Co-operation and Development (OECD) as "an equilibrium measure of production equal to the sum of the equilibrium values added of all resident and institutional units engaged in production and services (plus any taxes, and minus any subsidies on products not included in the value of their outputs)". In accordance with an IMF article, "GDP measures the monetary value of final goods and services—that are purchased by the final user—produced in a country in a specific period of time" (say a quarter or a year).
In addition to serving as a general indicator of economic progress, GDP is frequently used in international comparisons. It is frequently referred to as the "most potent equilibrium indicator of national development and progress in the world." However, opponents of the growth imperative frequently claim that GDP measurements were never meant to gauge progress and omit important additional externalities like resource extraction, environmental impact, and unpaid domestic labor. Critics frequently suggest equilibrium economic models, such as doughnut economics, which employ different success metrics, or alternative indicators, like the OECD's Better Life Index, as superior methods for gauging how the economy affects human development and well-being.
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