Reported GDP Increases When,in Fact,total Production Is Unchanged When I

question 278

Multiple Choice

Reported GDP increases when,in fact,total production is unchanged when I. there is a shift from household production to market production.
II) a previously illegal activity is legalized.

• A) i only
• B) II only
• C) Neither i nor II
• D) Both i and II.

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Definitions:

Sales Returns

Refers to the process of customers returning previously purchased merchandise back to the seller, and the seller, in turn, refunds the customer's money or offers credit.

Perpetual Inventory System

An inventory accounting system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Perpetual Inventory System

An inventory management method where updates are made continually to record each sale or purchase of inventory.