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Give Two Reasons Why GDP Does Not Reflect Total Production

question 142

Essay

Give two reasons why GDP does not reflect total production in an economy.


Definitions:

Foreign Exchange Market

A global marketplace for trading national currencies against one another.

Debt Market

A financial market where participants can issue and trade debt securities, often used by corporations and governments to finance their operations.

Derivatives Market

A market where financial instruments such as futures, options, and swaps are traded, whose value is derived from the value of an underlying asset.

Tertiary Market

A smaller and less accessible segment of the financial market where lesser-known securities are traded.

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