Understanding the Limitations of GDP and the Informal Economy

GDP is one of the most universally recognized terms in economics. Even outside people with an interest in the subject most adults would be able to tell you that GDP is a measure of how large an economy is.... But they might not be able to tell you how it’s calculated, or even what it stands for.

In this episode of Economic Explained, we will explore the following questions:

• What are the limitations of GDP?
• Are there better figures to look at to get an idea of how prosperous an economy is?
• And how could focus on something outside of pure productive capacity be good for our economy?

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