Respuesta :
Gross domestic product understates the total production of final goods and services because of the omission of option(d) i.e, the underground economy.
The gross domestic product (GDP) is a commonly used indicator of the value added produced by the production of goods and services in a country over a certain time period (GDP). As a result, it also takes into account the money made from that manufacturing or the sum of money spent on finished goods and services (fewer imports).
The four primary parts of the gross domestic product are government spending, corporate investment, personal consumption, and net exports.
Since it tells us about the size and health of an economy, GDP is important. Real GDP growth is frequently employed as a proxy for the state of the economy as a whole. Real GDP growth is typically regarded as a sign that the economy is doing well.
The demand for labor, the major and usually the only asset of the poor, rises as employment prospects improve. In turn, increasing employment has been a major factor in producing quicker growth.
The underground economy is made up of transactions that are deemed unlawful or do not follow the government's reporting standards.
Therefore, because they are not included, the GDP is understated.
The complete question is:
Gross domestic product understates the total production of final goods and services because of the omission of inflation. intermediate goods. exports. the underground economy.
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