Because GDP Ignores Most Transactions That Do Not Take Place

question 81

True/False

Because GDP ignores most transactions that do not take place in organized markets it probably led us to underestimate the true growth in real output in recent years.

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Definitions:

Complements

Products or services that complement each other, resulting in a rise in demand for one causing a corresponding increase in demand for the other.

Substitutes

Goods or services that can replace each other in use, whereby an increase in the price of one leads to an increase in demand for the other.

Quantity Of Zero

A condition where the quantity of a good or service supplied or demanded is zero, often due to a price set below or above the market equilibrium.

Current Demand

The existing desire or need for a product or service within a market at a specific point in time.