If a country wanted to increase their GDB tenfold, could it just increase salaries by ten, force companies to pay ten times more and spend 10 times more in every field as well ? So that everything is increased proportionally, thus making the GDP grow.

Question

If a country wanted to increase their GDB tenfold, could it just increase salaries by ten, force companies to pay ten times more and spend 10 times more in every field as well ? So that everything is increased proportionally, thus making the GDP grow.

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Answer 1

What happens to deposits? If you revalue all the money in banks by 10X, then you’ve devalued your currency and measures of your GDP won’t change.

This more often operates in the other direction, currencies are reduced by something like 1000 to compensate for past inflation. For example, Zimbabwe revalued their currency in 2019.