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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Definitions:

IQ

An acronym for Intelligence Quotient, a measure of a person's intellectual abilities in relation to their age group.

Double-blind Procedure

An experimental setup in which neither the participants nor the experimenters know who is receiving a particular treatment, to prevent bias.

Placebo Effect

A phenomenon where individuals experience a perceived or actual improvement in their condition despite receiving a treatment that has no therapeutic effect.

Control Groups

In experimental research, a group of subjects not exposed to the treatment or intervention being tested, serving as a baseline comparison for the experimental group.