GDP restriction 1Non-market activities are not included in GDP.
2. Transactions in an underground economy are not included in GDP.
3. Second-hand goods sales are not included in GDP.
4. The so-called "stock market" transactions are not included in GDP.
5. Leisure time is not included in GDP.
GNP 1's limitations2. the exchange rate can not determine whether the economy is expanding expats have inflated the GDP. The CPI is a convenient way to calculate the cost of living and the relative price level over time, but because it is based on a specific basket, it does not provide a completely accurate estimate of the cost of living. Foreign direct investment reduced GNP. The CPI has three issues that need to be mentioned: change in quality, substitution bias, and the introduction of new products. Let's take a closer look at each of these.