Principles of Macroeconomics / Unit 3 MAC 0210 short lesson, about 20 seconds
What GDP Leaves Out
Captions available
The idea
GDP counts market production only. It leaves out household production, used goods, and transactions that go unrecorded to avoid tax or the law.
In practice
Cooking dinner adds nothing to GDP; buying the same meal adds its price.
Where people slip
A used car was counted in the year it was built, so counting the resale would count it twice.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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