Because GDP ignores most transactions that do not take place in organized markets it probably led us to underestimate the true growth in real output in recent years.

Question

Quizplus · Accepted Answer

GDP only considers transactions that take place in organized markets and ignores informal and non-monetary transactions such as housework or volunteer work. Therefore, it may underestimate the true growth in real output.

Because GDP Ignores Most Transactions That Do Not Take Place