Please give a detailed solution with an explanation and answer all the questions provided in the image below.For the 3 blank answers here are the options:Blank Answer #1:investment or government purchases or consumptionBlank Answer #2:decreasing or increasingBlank Answer #3:an overall increase or an overall decrease or no overall change 5. Limitations of GDPAlthough 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 calculatingGDP for the United States? Check all that apply.O Expenditures on federal highwaysO The loss of enjoyment people incur when scenic land is converted to commercial useO The variety of goods available to consumersO The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the governmentWhen a U.S. company purchases and imports automotive parts from Canada to use to build cars within the United States, this purchase increases thecomponent of GDP while alsonet exports by the same amount. Therefore, the purchase ofautomotive parts from Canada causesin US GDP.

Gross domestic product is the market value of all goods and services produced in the domestic…

Answered: Although GDP is a reasonably good…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please give a detailed solution with an explanation and answer all the questions provided in the image below.
For the 3 blank answers here are the options:
Blank Answer #1:
investment or government purchases or consumption
Blank Answer #2:
decreasing or increasing
Blank Answer #3:
an overall increase or an overall decrease or no overall change

5. 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.
O Expenditures on federal highways
O The loss of enjoyment people incur when scenic land is converted to commercial use
O The variety of goods available to consumers
O The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government
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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