What is the significance of the production barrier


Assignment:

What is the significance of the production barrier?

(a) What are some goods and services that National Accounts treats differently? How has this evolved over time?

(b) How has GDP traditionally treated the informal sector of the economy? How would one measure output in this sector for alternative treatments? What would be the best guess at the effects of adding the informal sector to GDP?

(c) How does GDP account for household production? How can it be measured outside GDP? What conclusions can be drawn from these measures?

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