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2.2 Limitations of GDP

Learning objectives

—MEA-1.B—Define the limitations of GDPDefine the limitations of GDP.• GDP is a useful indicator of a nation’s economic performance, but it has some limitations, such as failing to account for nonmarket transactions.• Enduring understanding MEA-1: An economy’s performance can be measured by different indicators such as gross domestic product (GDP), the inflation rate, and the unemployment rate.

Define the limitations of GDP.

GDP is a useful indicator of a nation’s economic performance, but it has some limitations, such as failing to account for nonmarket transactions.
Enduring understanding MEA-1: An economy’s performance can be measured by different indicators such as gross domestic product (GDP), the inflation rate, and the unemployment rate.

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—2.3 UnemploymentRead