1.8. The underground economy and other non priced production make it difficult to accurately measure the precise...

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1.8. The underground economy and other non priced production make it difficult to accurately measure the precise level of GDP. But GDP could still be very accurate for measuring changes in the economy. If Ben Bernanke, the Federal Reserve chairman, is trying to find out whether the U.S. economy has gone into a recession, are the difficulties of measuring nonpriced production likely to be important problems for his purpose ? How is this like always wearing your shoes when you step on the bathroom scale?

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Modern Principles Macroeconomics

ISBN: 124428

2nd Edition

Authors: Tyler Cowen ,Alex Tabarrok

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