How do free products make the calculation of GDP more difficult? What are hedonic adjustments and why

Question:

How do “free” products make the calculation of GDP more difficult? What are hedonic adjustments and why are they necessary? Will inflation tend to be overstated or understated if quality improvements are not accounted for?

Explain.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Macroeconomics

ISBN: 9781264112456

22nd Edition

Authors: Campbell McConnell, Stanley Brue, Sean Flynn

Question Posted: