Discuss the limitations of national income accounting


Discussion:

1. Discuss what is, and what is not, included in calculating GDP.

Your response should be at least 75 words in length. You are required to use at least your textbook as source material for your response.

All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.

2. Why does the consumer price index exaggerate the inflation rate?

3. Why does investment spending not equal saving in the circular flow?

4. Discuss the limitations of national income accounting.

5. Why do total leakages and total injections have to be equal?

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Microeconomics: Discuss the limitations of national income accounting
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