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 are 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.

The loss of enjoyment people incur when scenic land is converted to commercial use

Federal government paychecks to soldiers

The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government

The leisure time enjoyed by households

When a U$.$S$.$ company purchases and imports automotive parts from Canada to use to build cars within the United States, this purchase increases the component of GDP while also net exports by the same amount. Therefore, the purchase of automotive parts from Canada causes in US GDP$.$

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