Related Web
Links - Module 10 - The Circular Flow and Gross Domestic Product |
Measuring the
size of the economy using GDP or GNP is standard practice. Economists rely on
these measures to review and predict trends in an economy. However, it is argued that a substantial
amount of economic activity is left out of the full measure of a country’s
performance. Among the activities
excluded are underground activities (shadow economies) such as illicit drug
trade, working off the books and services provided by homemakers (stay-at-home
moms or dads). |
The following links
and articles provide some insight into this perspective: |
Schneider,
Friedrich with Dominik Enste “Hiding in the Shadows: The Growth of the
Underground Economy”; http://www.imf.org/external/pubs/ft/issues/issues30/index.htm |
“Study:
Stay-at-Home Mom Worth Nearly $117,000 a Year,” http://www.chron.com/disp/story.mpl/nation/5765931.html |
For the Bureau
of Economic Analysis’ National Economic Accounts, components of GDP in broad
categories (C, I, G, imports, exports), and detailed accounts go to: http://www.bea.gov/national/Index.htm. |