Macro Unit 2: Economic Indicators and the Business Cycle - Limitations of GDP- Macro Topic 2.2

Hey, thanks for watching. In this episode I explain the limitations of GDP and why it's not the best way to measure standard of living. I talk about GDP per capita, income inequality, the environment, and the shadow economy. Just to clarify, the shadow economy doesn't include voluneer work, household production, or the black market. Those are seperate concepts, but they all show how some transactions are not included in GDP. Thanks again. Ultimate Review Packet- https://www.acdcecon.com/review-packet Econmovies: Endgame- https://youtu.be/CHReFKy_Mi4 Recent article where Bill Gates talks about how econ is not a science- https://qz.com/1709972/bill-gates-economists-dont-actually-understand-macroeconomics/ Wait, so why are universities reclassifying economics a STEM major? Well, it’s because of economics. International students that have STEM majors are allowed to stay in the US longer so, to increase enrollment and encourage high performing international students to study in the US, universities focused on the math and statistics side of economics making it a STEM major. So if you studying economics you can explain why the study of economics is no longer just the study of economics. Cool huh? Answer Key 1. A 2. E 3. C