If the safety of the work environment has improved over time,
A)real GDP will understate the growth rate of real income.
B)real GDP will overstate the growth rate of real income.
C)the GDP deflator will overestimate inflation.
D)real GDP will overstate the growth rate of real income,and the GDP deflator will understate inflation.

Question

Quizplus · Accepted Answer

Improvements in work environment safety are not directly captured in real GDP, so real GDP may understate the growth of real income as it doesn't account for non-monetary improvements in quality of life.

If the Safety of the Work Environment Has Improved Over