Chapter $05$: Aplia Homework

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$5.$ 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 Canada? Check all that apply.

The value produced by doing your own laundry

The costs of air and water pollution

The leisure time households have

Federal government paycheques to soldiers

When a Canadian company purchases and imports wood products from Brazil to use to build new houses, within Canada, this purchase increases the component of GDP$,$ while also net exports by the same amount. Therefore, the purchase of wood products from Brazil causes in Canadian GDP$.$