Which of the Following Statements About the Underground Economy Is

question 269

Multiple Choice

Which of the following statements about the underground economy is true?

• A)The underground economy in developing countries amounts to less than 10% of measured GDP.
• B)Most transactions that occur in the underground economy are included in the calculation of GDP.
• C)Excluding underground economy production from measured GDP causes errors in GDP growth estimates in the long run.
• D)Income that is earned but not reported as income for tax purposes is included in the calculation of GDP.
• E)The Canadian underground economy is continually growing relative to measured GDP.