Author Question: Which of the following will lead to GDP underestimating our true output? a. Mary begins a catering ... (Read 43 times)

mia · **on:** Jun 30, 2018

Which of the following will lead to GDP underestimating our true output?
a. Mary begins a catering business.
b. James begins drawing Social Security benefits upon his retirement.
c. David accepts a position as a software specialist at Microsoft.
d. Gretchen begins an accounting and bookkeeping service in her home, accepting cash as payment, which is not reported to tax authorities.

Question 2

Economists have proved that a substantial increase in income during a month does not affect consumption much in the short run unless it is perceived as a permanent increase.
a. True
b. False
Indicate whether the statement is true or false