Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I gather that the measurement of GDP is with anything that is a final good or service. But this does not include second hand good

I gather that the measurement of GDP is with anything that is a final good or service. But this does not include second hand good or intermediate goods which are good that are used to make or build other products. I believe that the informal market transactions may be a limitation as well because the GDP underestimates the actual amount of output produced in the economy, but I am still trying to understand what the informal market transaction are. I understand that the GDP is consumption+investments+government purchases+Net exports, and anything that does not fall under those catogories would be a limitaion?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Macroeconomics A European Perspective

Authors: Olivier Blanchard, Alessia Amighini, Francesco Giavazzi

4th Edition

1292360895, 9781292360898

More Books

Students also viewed these Economics questions

Question

what is marketting

Answered: 1 week ago