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t change real GDP Valuing outputs of different years at mon better measure of change in total production Ⅱ Limitation of the GDP Eg: Per capital GDP in African $5 a do they survive? ? is not a measure of the nation`s economic wellbeing ? International GDP parisions are vastly misleading when the two countries differ greatly in the fraction of economic acticity that each conducts in anized markets. ? Ilegal economic activity ? Underground economycash/barter Eg:9112021, American economy better off or worse off? ? as well as Goods get counted ? Eg: A country at war is surely worse off,but will this reflected in its GDP? NO 3. Ecological Costs are not Netted out of GDP ? GDP can not give us a ture measure of the increase in economic welfare that our economy produces. Ⅲ GDP Growth ? Eg:GDP measures AD or AS? ? GDP=hours of work labor productivity ? Potetial GDP Is the real GDPthat the economy would produce if its labo