CFA Practice Question

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CFA Practice Question

The size of underground economies differs across countries. In Greece, the underground economy has been estimated to be as big as 30% of GDP; in Spain, 25%; in Italy, 20%; and in the United States, about 7%. Given this information, official GDP measures understate true economic activity the most in ______.

A. Greece
B. The United States
C. Italy
Correct Answer: A

Since Greece has the reportedly largest relative underground economy, official statistics underestimate Greek production the most.

User Contributed Comments 2

User Comment
johntan1979 No wonder they are in such deep s*** now
jonan203 lol, ironic
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