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Earlier people used to earn X amount as salary and from that they could buy Y no.of items. Over a period of time salary increases to 3X but they could still buy only Y no.of items.Does this indicate zero economic growth?

Which is more worthy, more money which has less currency value or less money which has more currency value?

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  • This is just called inflation.
    – user253751
    Mar 15, 2021 at 10:21

2 Answers 2

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Earlier people used to earn X amount as salary and from that they could buy Y no.of items. Over a period of time salary increases to 3X but they could still buy only Y no.of items.Does this indicate zero economic growth?

Mainly this indicates inflation.

If the value of one unit of currency decreases, your work is more valuable in terms of this currency as well as the said number of items are more valuable in terms of this currency.

Which is more worthy, more money which has less currency value or less money which has more currency value?

That cannot be told as it is, obviously it depends on the numbers which are in the game, i. e. how much more or less money and how much less or more currency value.

For example, if you take two currencies as the EUR and the USD. 1 EUR is about 1,20 USD, so "more currency value" on the EUR side. That means if you have more money in the currency with less value (1,20 USD) can mean the same as having less money in the currency with more value (1,00 EUR). It can be more or less if you modify these numbers.

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  • When is economy is said to have grown? Is this condition of value of work increasing compared to money value and value of items reducing compared to money value satisfies economy growth condition? Mar 15, 2021 at 11:19
  • @DeepakKumar the terms you are looking for are "real growth" (which accounts for inflation, i.e. everything is scaled to the value of the currency in a specific year) and "nominal growth" (which may be due partially, or even nearly completely, due to inflation...see stagflation )
    – PGnome
    Mar 15, 2021 at 15:38
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I cannot comment as I'm new to the community, so instead of posting my opinion through an answer which is not an answer exactly, rather it's just an opinion. It basically indicates the inflation rate, which bad. Not all can earn 3X by time if we consider a wide picture. Daily essentials are becoming more and more costly as compared to currency value of money, which shows downside economic growth. There are countries where one has to pay a bunch for just a drink, while there are also some countries where one can buy the same drink by only a single coin. Which shows the wealthiness of an Economy.

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