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

because it would effectively change nothing, you just inflated your economy by 10x but because GDP accounts for inflation unless your internal economy also grown by 10x(it won’t) people just buy from foreign nations at less than 10x cost.

this would in turn put quite a few companies out of business if they ran in this inflated economy.

so at the end if anything doing that woudl cause GDP to Plummet due to the chaos it would induce