What are some problems with using GDP as a measure of economic development?

Answer 1

Nominal GDP will grow if real output grows or prices rise or some combination or the two Correcting for inflation by using real GDP is a start. If The Labor force grows in the Same proportion as the population The Per Capita GDP is a measure. If the labor force is fully employed then actual per capita GDP will equal potential per capita GDP. Potential per capita GDP removes cyclical fluctuations and is an even better measure of how well developed the economy is.