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Economic growth is one of the key macroeconomic objectives that influence national welfare. The economic growth rate must outstrip the population growth rate for living standards to increase and adequate job creation to sustain the population (Mohr et al, 2004). Favourable economic growth implies that a nation is better off, things are going well. GDP is used to measure economic growth. Hence, if GDP is used as a measure of national welfare, a rise in GDP would imply that the national welfare has improved and people are better off than they were before.
There are some serious flaws with using the GDP calculation alone to measure economic activity...

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