2.2

Limitations of GDP

AP Macroeconomics

What GDP Measures Well

What GDP Fails to Capture

1. Non-Market Activities

2. Underground Economy

3. Quality of Life and Well-Being

4. Environmental Degradation

5. Composition of Output

6. Income Distribution

Quality vs. Quantity

Alternative Measures

GDP Per Capita: A Better but Imperfect Measure

AP Exam Tips

Common Mistakes