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Gross Domestic Product (GDP)figures Tend to Understate the Quantity of Goods

Question 104

Multiple Choice

Gross domestic product (GDP) figures tend to understate the quantity of goods and services available because:


A) GDP excludes the value of goods produced at home.
B) many items are counted twice or more in the intermediate stages of production.
C) more women are entering the labor force.
D) firms often add less to inventories than they planned to.
E) exports are subtracted from GDP but imports are not added.

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