Which of the following statements about the underground economy is true?

Question

Quizplus · Accepted Answer

Excluding underground economy production from measured GDP does cause errors in GDP growth estimates in the long run, as it underestimates the true size of the economy. However, none of the other statements are true. The underground economy in developing countries is often estimated to be much larger than 10% of measured GDP, transactions in the underground economy are not included in GDP calculations, unreported income is not part of GDP, and the Canadian underground economy has not been consistently growing relative to measured GDP.

Which of the Following Statements About the Underground Economy Is