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AP Macroeconomics 2.2: GDP Limitations

Explain what GDP measures and why nonmarket activity and other limitations affect economic performance comparisons.

Syllabus
Effective Fall 2025
Course
AP Macroeconomics

MEA-1.B—Define the limitations of GDP question 1

[Maximum number: 1]

GDP does not fully measure a nation's economic performance because it fails to account for which of the following?

A

Exports of goods and services

B

Government spending

C

Business spending on physical capital

D

Consumer spending on durable goods

E

Nonmarket transactions

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