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Unformatted text preview: by factors of production located within a nations borders b. Observations i. GDP measures the dollar (nominal) value of final output ii. Adjustments (prices and population) will be made later c. Not included in GDP i. Financial transactions ii. Transfer payments iii. Secondhand goods iv. Household production v. Legal underground transactions vi. Illegal underground transactions d. Limitations i. Excludes non-market production ii. Different countries have different legal versus illegal activities iii. Quality of life is not measured iv. GDP poorly measures a nations-well being...
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