Limitations of GDP

This study guide covers Gross Domestic Product (GDP), its importance as an economic indicator, and its limitations. It explains how GDP is used for measuring economic performance, tracking changes, making international comparisons, and informing policy decisions. The guide emphasizes the P-I-E-S framework (Population, Inequality, Environment, and Shadow Economy) to highlight GDP's limitations. It also includes a focus on exam preparation with high-priority topics, question types, and last-minute tips, including the distinction between GDP and GDP per capita. Finally, practice questions and an answer key are provided for review.