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.
A
You might also like to view...
As was demonstrated in 2007, firms in the shadow banking system
A) were very vulnerable to bank runs. B) were protected from financial ruin by federal deposit insurance. C) were more insulated from the financial crisis than were commercial banks. D) were well insulated from bank runs.
The Uruguay round of GATT (1993 ) talks
A) reduced trade barriers and tariffs. B) increased trade barriers and tariffs. C) lowered some trade barriers but increased tariffs. D) left tariffs and trade barriers unchanged.
Ceteris paribus, a change in the quantity supplied along the supply curve of Braun coffee makers is:
a. directly related to the price of a Morphy Richards coffee maker. b. directly related to the price of milk and cream. c. directly related to the prices of inputs used in the production of Braun coffee makers. d. directly related to changes in the technology used in producing coffee makers. e. directly related to the price of a Braun coffee maker.
Refer to the information provided in Figure 16.3 below to answer the question(s) that follow. 
Figure 16.3Refer to Figure 16.3. The efficient level of output of this product is
A. 0. B. 15. C. 20. D. indeterminate from this information.