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Why can GDP be seriously underestimated in the case of developing countries?

Why can GDP be seriously underestimated in the case of developing countries?
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Answer #1

SOLUTION:-

* In most of the developing nations most of the econmic transactions in the market go unreported and become part of the black market, if these transactions in the market are recorded in the market than the GDP of the developing nations will increase.

* The xistence of the black market and non recorded transactions is the reason why GDP is underestimated in the developing ecnonomies.

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