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Why Do GDP Figures Tend to Understate the Quantity of Goods

Question 90

Multiple Choice

Why do GDP figures tend to understate the quantity of goods and services available?  


A)  because most household production is ignored 
B)  because many items are counted twice or more in intermediate stages of production 
C)  because more women are entering the labour force 
D)  because firms often add less to inventories than they planned to

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