GDP understates the value of output produced by an economy because it
A) includes environmental degradation caused by increased output production.
B) includes transactions that do not take place in organized markets, such as home-cooked meals.
C) excludes value added from the underground economy, such as tips taken under the table.
D) excludes the value of the wages and benefits of government employees.
Question 2
Capital deepening is the only mechanism by which economies can grow.
Indicate whether the statement is true or false
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