Which of the following would cause the GDP statistic to understate the growth in economic well-being over the past 50 years?
A)Increase in the population
B)Increase in the price level
C)Increase in the proportion of goods which pass through the market
D)Increase in leisure time

Question

Quizplus · Accepted Answer

An increase in leisure time would not be included in the calculation of GDP, therefore it would understate the growth in economic well-being. Options A and B are incorrect because they would lead to an overstatement in the growth of economic well-being. Option C is also incorrect because an increase in the proportion of goods that go through the market would actually lead to an increase in GDP.

Which of the Following Would Cause the GDP Statistic to Understate