Limitations of GDPAlthough GDP is a reasonably good measure of a nation's output, it does not necessarily include all transactions and production for that nation. Which of the following scenarios are either not accounted for or measured inaccurately by either the income or the expenditure methods of calculating GDP for the United States? a. The costs of air and water pollution b. The quality of goods available to consumers c. Expenditures on federal highwaysd. The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government

a. The costs of air and water pollution

b. The quality of goods available to consumer

d. The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government

Explanation:

Gross domestic product is the sum of all final goods and services produced in an economy within a given period which is usually a year.

GDP calculated using the expenditure approach = Consumption spending + Investment spending + Government Spending + Net Export

GDP doesn't include:

1. a measure for the quality of goods

2. A measure for environmental pollution

3. Transactions not reported to and recorded by the government.

Expenditure on the highway is included in government expenditure in the calculation of GDP.

Some other Items not included in the GDP are

1. Transfer payments

2. Intermediate goods

3. Used goods

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