Which of the following will lead to GDP underestimating our true ...

[mia]

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

[sailorcrescent]

Answer to Question 1

d

Answer to Question 2

True

[mia]

Thanks for the timely response, appreciate it

[connor417]

YES! Correct, THANKS for helping me on my review