Question

Gross domestic product understates the total production of final goods and services because of the omission of inflation. intermediate goods. exports. the underground economy.

Answer 1

Answer:

the underground economy

Explanation:

Gross domestic product is defined as the monetary value of all goods and services that a country produces within a given period.

It is estimated by using income, expenditure, and production in markets.

However GDP does not consider the underground economy.

The underground economy is made up of transactions that are considered illegal or that do not meet up to the reporting requirements of the government.

In effect these are not reported in GDP so GDP is understated.