Arrange the following steps in understanding the limitations of GDP due to household production: A) Recognizing that household services are not valued in GDP, B) Analyzing the impact of these omissions on economic welfare, C) Identifying types of household production, D) Evaluating potential policy responses to these limitations.

To understand the limitations of GDP regarding household production, we start by recognizing that household services, like cooking or childcare, are not included in GDP calculations. This means we then identify the different types of household production, such as cleaning, cooking, and caring for family members, to see what is missing from our economic measures. After that, we analyze how leaving out these contributions affects our understanding of economic welfare, as it may underestimate how well people are doing. Finally, we can evaluate potential policy responses, like considering these household contributions in future economic assessments, to create a more accurate picture of overall well-being. For example, if a stay-at-home parent provides childcare and housework, their work is valuable yet not reflected in GDP, which could lead to misleading conclusions about the economy's health.