GDP figures may understate the value of goods and services due to
A)the exclusion of the underground economy.
B)the inclusion of household production.
C)the inclusion of legal non-reported,non-taxed income.
D)the exclusion of the value of stocks.

Question

Quizplus · Accepted Answer

The exclusion of the underground economy, which includes unreported economic activities that operate outside the formal channels of the economy, can lead to an understatement of the actual value of goods and services produced.

GDP Figures May Understate the Value of Goods and Services