Explain the Shortcomings of GDP as a Measure of Total

question 23

Essay

Explain the shortcomings of GDP as a measure of total production in an economy, and as a measure of economic wellbeing.
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Definitions:

Wash Sale

A tax term referring to the sale of a security at a loss and the repurchase of the same, or substantially the same, security shortly before or after, which disallows the claim of the loss for tax purposes.

Substantially Identical

Refers to property or securities that are nearly the same, often used in tax rules concerning wash sales.

Fair Market Value

The price at which an asset would sell on the open market between a willing buyer and a willing seller.

Rental Business

An entrepreneurial activity where an individual or entity rents out properties or equipment to others for a profit.