Pemandu’s 6% growth rate is wrong
Will you employ people that fail math to keep your accounts books ? You won’t. But the same rule will not apply at national scale.
By Random Thoughts
Who am I to say Pemandu figure is wrong? I am just a layman not economist but I think come to math you don’t need to be an economist to know how to calculate. I shall put down my reason here and let the reader decide.
Why I say Pemandu’s 6% REAL growth rate is wrong? Well, be patient, before we go into that we need to clarify what is real and what is nominal growth rate. As a layman my understanding of REAL rate means without inflation. Nominal means include inflation. or the expert like to said REAL rate means adjusted for inflation which means in layman terms take out the inflation. So if REAL growth is 6%, the nominal growth is definitely more than 6%. To get the REAL figure we have to take away the growth contributed by inflation.
Read more at: http://tongkm.blogspot.com/2010/12/pemandus-6-growth-rate-is-wrong.html
and: http://tongkm.blogspot.com/2010/12/pemandu-cant-count.html
