rtphones basically at no additional charge, GDP declined because sales of stand-alone GPS systems fell.*4 Finally, a third example, also provided by Varian, shows that, because GDP does not fully count the export of intangibles such as software and design, GDP is understated. He shows how an iPhone manuf

stment for smartphones. Of course, fewer photos would have been taken had the smartphone not been developed, but the point still stands. Similarly, Varian shows that with the onset of the commercial application of GPS technology, productivity growth in trucking was twice the aggregate US productivity gr

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