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Gross Domestic Product was designed as a measure of economic activity, specifically a measure of national

production. Despite this intent, GDP is widely interpreted as a measure of economic welfare or standard of living (when measured in per capita terms).

What are the shortcomings of using GDP as a measure of economic welfare? What would you like to add to (or subtract from) GDP to make it a better reflection of how well people are doing in a nation? 

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The shortcomings of using GDP are as follows 1: It only includes market transactions 2: It does not describe the output 3: It... View the full answer

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