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Suppose Economists Find a Way to Include All Economic Activity

question 156

Essay

Suppose economists find a way to include all economic activity (underground or otherwise) in GDP. How will this affect the GDP of rich and poor countries? Will the new GDP per capita exhibit more income inequality across countries? Explain.


Definitions:

Compliance

is the act of conforming to or following rules, standards, or laws.

High Power Distance Cultures

Societies or organizations where there is a significant acceptance of unequal distribution of power and authority.

Persuasion

The act of convincing someone to believe or do something through reasoning or the use of temptation.

Coalition

An alliance formed by individuals or groups working together to achieve a common goal, often seen in political and social contexts.

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