GDP

What does GDP measure? And is it an accurate Macroeconomic indicator?

Gross Domestic Product is the measurement of the total price for all the goods and services produced,  by a nation. GDP is most effective when it takes into account the rate of inflation because it can adjust to the value of the currency.  GDP is a double edged sword when it comes to accuracy because although it tells us how much our country is producing it does not take into account other factors involved in the production of goods. All in all it is not an accurate indicator of macroeconomic success because it fails to take into account the environmental price of goods produced. By polluting a lake for business adds to overall GDP and cleaning up that lake adds to the GDP. However, fishermen who fish in that lake lose their market which lowers the overall GDP.