Why does GDP have shortcoming Why does GDP have shortcoming x HW3-ECON 2000-03 P

Question

Why does GDP have shortcoming
Why does GDP have shortcoming

x HW3-ECON 2000-03 Princi HW3 ct.html PCC Home youtube N Netflix amazon N mctc Saved a. Economists include only final goods and services when measuring GDP for a particular year because o if intermediate goods were counted, then multiple counting would occur if intermediate goods were not counted, then multiple counting would occur O i If intermediate goods were not counted, then prices would be overstated. 0 if intermediate goods were counted, then prices would be overstated. b. Gross domestic product does not include the value of the stocks and bonds bought and sold because these are not economic investment, but should be counted as production of final goods and services. consumption expenditures, but should be counted as production of final goods and services. consumption expenditures and should not be counted as production of final goods and services O economic Investment and should not be counted as production of final goods and services. c. When measuring GDP for a particular year, economists exclude the value of the used furniture bought and sold t it is not reported anywhere. the value needs to be averaged over a specified number of years. it was counted in GDP in some previous year 1 of 14 Next >

Explanation / Answer

a) the correct option is if intermediate goods were counted then multiple counting would occur.

b) the correct option is economic investment and should not be counted as a production of final goods and services.

c) the correct option is it was counted on GDP in some previous year

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