In reality, the GDP-GDI gap for the United States
A) is due to the presence of substantial black market activity.
B) is due to different accounting standards among countries in the world.
C) represents a small fraction of measured activity.
D) represents the impact of transfer payments.

Question

Quizplus · Accepted Answer

The GDP-GDI gap for the United States represents a small fraction of measured economic activity, as the measures are two different ways of calculating the same thing (the size of the economy). It is not due to black market activity, different accounting standards, or the impact of transfer payments.

In Reality, the GDP-GDI Gap for the United States