gdp tends to underestimate the productive activity in the economy because it excludes

The recurring ups and downs in the level of economic activity extending over several years are referred to as. Prices are stableC. To avoid multiple counting in national income accounts, only: A. GDP excludes most non-market transactions. They are counted as part of government purchases in the calculation of the gross domestic productC. There’s little doubt that the confusion is one of mainstream economists being wedded to Adam Smith’s definition of the value of goods, and not appreciating that the economics of production involves considerably more than final values. One wonders at the purpose of it all, given, as Petty points out in his Political Arithmetick, the size of a country is immaterial to its wealth, which is better judged on a per capita basis. $705 billionD. In calculating total investment for 2007, national income accountants would: A. $716 billion, 25. When gross investment is positive, net investment: A. Corporate profits are zeroB. Goldmoney will not be held responsible for any claim, loss, damage, or inconvenience caused as a result of any information or opinion contained in this article and any action taken as a result of the opinions and information contained in this article is at your own risk.

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