Question

Other income and output measures must be combined with GDP to express the performance of the economy because

A. GDP has omissions such as underground economy and non-market activities
B. the national debt has doubled in the last year
C. The leading indicators have been influenced by natural disasters
d. CPI is a more accurate tool to use to calculate economic stability

Answer 1

Other income and output measures must be combined with GDP to express the performance of the economy because GDP has omissions such as the underground economy and non-market activities.

Step-by-step explanation:

The other income and output measures must be combined with GDP to express the performance of the economy because GDP has some omissions such as the underground economy and non-market activities. These omissions are not captured in the calculation of GDP, so it is necessary to include other measures to get a complete picture of the economy.

For example, the underground economy consists of activities that are not reported to the government, such as illegal activities or informal work. Non-market activities, such as household production or volunteer work, are also excluded from GDP calculations because they do not involve monetary transactions.

By combining other measures, such as the national income approach or including measures of income and expenditure, we can get a more comprehensive understanding of the economy's performance.