6. 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 th Which of the following scenarios are either not accounted for or measured inaccurately by either the income or the expenditure meth GDP for the United States? Check all that apply. The costs of overfishing and other overly intensive uses of resources O 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 wood from Brazil to use to build new houses within the United States, this purchase inc component of GDP while also net exports by the same amount. Therefore, the pur in US GDP. from Brazil causes
6. 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 th Which of the following scenarios are either not accounted for or measured inaccurately by either the income or the expenditure meth GDP for the United States? Check all that apply. The costs of overfishing and other overly intensive uses of resources O 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 wood from Brazil to use to build new houses within the United States, this purchase inc component of GDP while also net exports by the same amount. Therefore, the pur in US GDP. from Brazil causes
Chapter5: An Introduction To Macroeconomics
Section: Chapter Questions
Problem 3TY
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Transcribed Image Text:6. 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 costs of overfishing and other overly intensive uses of resources
O 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 wood from Brazil to use to build new houses within the United States, this purchase increases the
component of GDP while also
net exports by the same amount. Therefore, the purchase of wood
in US GDP.
from Brazil causes
Expert Solution
Step 1
GDP refers to the sum of consumption, investment, government expenditure and net exports. This can be written as:
GDP = C + I + G + NX
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