During recessions,GDP falls and unemployment increases.Why might the actual output produced not fall as much as officially measured GDP during recessions?
A) There is an increase in involuntary part-time employment during recessions,the output from which is not accounted for in GDP
B) Workers who became unemployed during the recession may produce goods in the underground economy
C) Unemployment benefits to laid off workers are included in GDP
D) Laid off workers may start their own businesses,but profit income from self-employment is not accounted for in GDP
E) Unemployed workers have more leisure time to enjoy.
Correct Answer:
Verified
Q104: Which of the following people would be
Q105: As a large number of students graduate
Q106: Kara is a construction worker.Because of adverse
Q107: An example of a frictionally unemployed individual
Q108: Dennis is an excellent typist.However,because he has
Q110: Which of the following annual real GDP
Q111: Seasonal unemployment
A) is short-term joblessness experienced by
Q112: Some of the inaccuracies in measuring GDP
Q113: Improvements in the quality of goods and
Q114: According to many economists,production that occurs in
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