Which of the Following Is the Most Likely Side Effect

question 95

Multiple Choice

Which of the following is the most likely side effect of an increase in the relative size of the underground economy with the passage of time?

• A) The growth rate of real GDP will tend to understate the growth rate of total output.
• B) The growth rate of real GDP will tend to overstate the growth rate of total output.
• C) The GDP deflator will tend to overstate any increase in inflation.
• D) The GDP deflator will tend to understate any increase in inflation.

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