As a reductio ad absurdum, suppose that you and I and a few friends sit down in a circle and sell the same hot dog to each other over and over again. What value have we created? Assuming that the price of the hot dog remains the same each time, and we’re spending the same money over and over, according to your formula we have created an infinite supply of hot dogs. Q can go as high as we want it.
That’s quite a hot dog! Maybe that’s how Jesus fed all those people with just a couple loaves and fishes? The hot dog of infinite bounty. :)
I rather suspect however that Q in that formula is only quantity of goods sold, not quantity of goods produced or consumed. I’m more interested in the actual amount of value produced- the amount of work done.
But this is a contrived example where each person agrees to buy the hot dog for purposes of this experiment.
Fair market value is typically defined as the value you'd get on the market, selling to someone you don't know and without coercion.
So, like if I arrange with a rich guy to sell my house (worth about $700k) to him for $2million, so that he can 'donate' it back to me and take the charitable giving write-off for $2million, this would not fly, because by the definition of fair market value used by the IRS (and other agencies), my arrangement with the guy is not the fair market value. In order to determine that, I'd need to put the house up for sale to general availability and see what others offer 'me'.
So to 'fix' your example, you'd need to sit in a circle with your friends. Say the hot dog you are about to eat is for sale, and see if any of your friends want it from you.
By the way: GDP measures of a country’s economy are measuring the total value of the finished goods produced in a given year, sold to the final user. The intermediate steps you listed don’t count. So the mv=qp formula doesn’t directly translate to gdp growth. It’s just an accounting identity over the intermediate sales of unfinished products.
That’s quite a hot dog! Maybe that’s how Jesus fed all those people with just a couple loaves and fishes? The hot dog of infinite bounty. :)
I rather suspect however that Q in that formula is only quantity of goods sold, not quantity of goods produced or consumed. I’m more interested in the actual amount of value produced- the amount of work done.