Limitations of GDP Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all transactions and production for that nation.
Which of the following scenarios is either not accounted for or measured inaccurately by either the income or the expenditure methods of calculating GDP for the United States? Check all that apply.
A. The loss of enjoyment people incur when scenic land is converted to commercial use
B. The leisure time enjoyed by households
C. Federal government paychecks to soldiers
D. The value produced when you wash your own car at home
When a U. S. company purchases and imports electronic parts from China to use to produce MP3 players within the United States, this purchase increases the component of GDP while also net exports by the same amount. Therefore, the purchase of electronic parts from China causes in US GDP.