It has been reported that ‘in the last 30 years Indonesia has struggled out of poverty into the ranks of the world’s middle-income countries. The average Indonesian is better off than five years ago.’If you were asked as an economist to show that the ‘average Indonesian is better off than five years ago’, explain what information you would need. [12 marks]
Chapter: National Income Accounting & Economic Indicators
Using the National Income Accounting concepts and the available economic indicators, find out whether the standard of living for Indonesia has improved significantly. Also, assess the strengths and limitations of the economic indicators to show whether the living standard has indeed improved, such as the use of real GDP per capita.
07 August 2018