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Reading 20: Measuring Economic Activity - LOS a ~ Q11

Q11. When considering the effect of depreciation on the measurement of a country’s economic activity, most economists believe it:

A)   must be included in the calculation in order to provide the most accurate assessment of the country’s economic position.

B)   may or may not be included in the calculation as long the calculation is clearly identified as a “gross” or “net” number.

C)   is difficult to accurately quantify and is generally excluded from the calculation.

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