Should Economists Target Nominal GDP?

The video discusses the differences between real and nominal GDP, emphasizing the importance of price stability and its impact on economic models. It highlights the role of demographics in driving economic growth, particularly in the context of the UK economy. The discussion also covers the potential implications of Brexit on job creation and demographic changes, with a focus on the influx of people from the European Union and its contribution to economic strength.

What is one of the main concerns about focusing on nominal GDP in economic policy?

• It provides a clear picture of price dynamics.

• It is more stable over time.

• It is easier to measure than real GDP.

• It may obscure the gap between price changes and the real economy.

According to the discussion, what is expected to drive the economy more than nominal GDP?

• International trade

• Demographic changes

• Government policies

• Technological advancements

What potential impact of Brexit is discussed in relation to the UK's technology sector?

• Increased investment from the EU

• A rise in startup growth

• A potential brain drain

• More government support

What is a significant argument of the Brexit campaign regarding job creation?

• Job creation is not a priority for the government.

• Jobs are being created for locals rather than foreigners.

• The economy is not creating enough jobs.

• Jobs are being created for foreigners rather than locals.

How has immigration contributed to the UK's economic strength according to the discussion?

• By reducing the number of unemployed Britons

• By stabilizing the housing market

• By decreasing the cost of living

• By increasing the number of consumers and demand for services