Which of the Following Statements About the Underground Economy Is

Multiple Choice

Which of the following statements about the underground economy is true?

A) The underground economy in developing countries amounts to less than 10% of measured GDP.
B) Most transactions that occur in the underground economy are included in the calculation of GDP.
C) Excluding underground economy production from measured GDP causes errors in GDP growth estimates in the long run.
D) Income that is earned but not reported as income for tax purposes is included in the calculation of GDP.
E) The Canadian underground economy is continually growing relative to measured GDP.