Economics 9708 · AS & A Level · National income statistics

National income statistics — practice question

What factors could make the increase in measured GNP overstate the economy’s ‘true’ economic growth rate?

  • APeople move from unpaid housework to paid employment.
  • BThe exchange rate is overvalued according to purchasing power parity.
  • CThere is a reduction in environmental pollution.
  • DThere is a reduction in the rate of investment in physical capital.

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