Gross domestic product (GDP)understates total economic activity because it ignores household production of goods and services.

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Melania Stefani · Accepted Answer

Final Answer : True, Explanation :  GDP only measures the production of goods and services in the market economy, and excludes any production that occurs within households. This household production can include tasks such as cooking, cleaning, and childcare, which can have significant economic value but are not included in GDP calculations.

Gross domestic product (GDP)understates total economic activity because it ignores household production of goods and services.

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