GDP may inaccurately measure the value of aggregate output because it may not properly account for
A) production in the underground economy and the true value of government production.
B) the true value of government production and the proper value of purchases and sales of used goods.
C) the proper value of purchases and sales of used goods and depreciation of consumer durables.
D) the depreciation of consumer durables and production in the underground economy.

Question

Quizplus · Accepted Answer

GDP may not be accurate because it does not account for production in the underground economy (such as illegal activities) and may not accurately measure the true value of government production (such as public services).

GDP May Inaccurately Measure the Value of Aggregate Output Because