What Are some of the shortcomings of the
The Gross Domestic Product (GDP) is the summation of the money value of all the final goods and services produced in the economy in a given period of time which is usually a financial year. Only the goods and services produced within the political boundary of the economy is considered to be included in the calculation of the GDP of the economy. The resale of the used goods and the goods produced and kept as inventory stock in the previous year is not included in the GDP. Thus, the GDP allows calculating the monetary value of all the final goods and services produced within the economy and also to calculate the real GDP by measuring the GDP with the base year price level to identify the real change in the GDP of the economy. Thus it is a good measure.
Step by step
Solved in 2 steps
