EconomicsAlthough 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? a. The value of baby-sitting services, when the babysitter is paid in cash and the transaction isn't reported to the government. b. The costs of air and water pollution. c. Funds spent by city governments to renovate their buildings. d. The leisure time they have.
When a U. S. company purchases and imports wood from Brazil to use to build new houses within the United States, this purchase increases thecomponent of GDP while alsonet exports by the same amount. Therefore, the purchase of wood from Brazilin US GDP.