Why is real GDP not seen as a perfect measure of production in an economy?
A) because it is only an estimate and contains accounting errors
B) because it does not count the underground economy or nonmarket production
C) because it is negatively adjusted for leisure, but not for environmental impacts
D) All of the answers are correct.

Question

Quizplus · Accepted Answer

Real GDP does not count the underground economy or nonmarket production, making it an incomplete measure of production in the economy. While it is true that real GDP can contain accounting errors and is negatively adjusted for leisure but not for environmental impacts, these factors do not make it an imperfect measure on their own.

Why Is Real GDP Not Seen as a Perfect Measure