New GDP Measurement Unlocks Powerful Economic Policy Insights
The article explores how the value concept affects the relationship between supply and demand in the economy. It introduces a new way to measure GDP using the value added method. The study uses general equilibrium modeling to understand how the economy works, focusing on market equilibriums and macro balances. By simulating different economic policies, the researchers show how changes in sector structure and macro closures can impact the economy. Overall, the paper provides a framework for analyzing economic policies using general equilibrium models.