Macroeconomics maya - A.Seshan

We have read in economics about how nominal values do not reflect reality. People often have a money illusion, in which they may feel better off with a rise in their nominal incomes, although their real incomes, or the purchasing power, might have fallen owing to inflation. Economists take care of such an illusion when they compile the real gross domestic product (GDP), or the net of inflation, to reflect the true underlying value of goods and services produced in a year. But, in my view, even that is illusory.........

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