Generally,the greater the amount of productive activities generated by the household sector,
A)the more likely it is that the current GDP will be overstated.
B)the more likely it is that the current GDP will be understated.
C)the more accurately GDP will measure current productive activity.
D)the greater the GDP deflator.

Question

Quizplus · Accepted Answer

If there are a lot of productive activities being generated by the household sector that are not included in the official measures of GDP, such as unpaid work or informal sector activities, then the current GDP will likely be understated, meaning that it is not accurately capturing the full extent of actual productive activity in the economy.

Generally,the Greater the Amount of Productive Activities Generated by the Household