Why do some economists think that GDP may overestimate the actual level of economic activity in an economy?
A) There is no positive adjustment for the underground economy.
B) There is no negative adjustment for pollution.
C) It does not account for the distribution of income in a country.
D) There is no positive adjustment for leisure and well- being.

Question

Quizplus · Accepted Answer

GDP may overestimate economic activity because it does not subtract the negative impacts of pollution, which can degrade quality of life and economic sustainability.

Why Do Some Economists Think That GDP May Overestimate the Actual