LO 4 In an economy, the stock market and the housing market boomed in a given year. The annual stock market turnover reached a record high of $600 million and the transaction value of the second-hand property was about $400 million.

All these transaction values were twice the economy’s GDP in that year. To correct this measurement error, it was suggested that $1,000 million should be added back to the economy’s GDP. Do the transaction igures relect a measurement error?

Explain your answer.