What is the result if the size of the "underground economy" grows?
A) Real GDP will rise more rapidly than nominal GDP.
B) GDP will understate the level of economic activity.
C) GDP will overstate the level of economic activity.
D) Since GDP does not include the "underground economy",there will be no understatement or overstatement of economic activity.
E) Since the "underground economy" is included in the reported GDP,there is no issue of inaccuracy.
Correct Answer:
Verified
Q129: Which of the following is equivalent to
Q130: What is real GDP?
A)Nominal GDP minus taxes.
B)Nominal
Q131: Why are GDP data criticized as being
Q132: Use the following,with Year 1 as the
Q133: What is one way of thinking of
Q135: How is the economic growth rate measured?
A)Real
Q136: Which of the following is the most
Q137: Which of the following would not cause
Q138: If the real GDP per capita in
Q139: Which of the following statements supports the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents