Consider the following GDP per person data for 2020: USA: $64,000 Burundi: $800 Taken literally, the $800 for Burundi translates into $2.20 per day. Think about how difficult it would be to live off of $2.20 each day. Most people in Burundi are poor. However, most people scrape by. Describe how home production and the underground economy might cause the official GDP per person statistic for Burundi to significantly underestimate output in that country.

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Q&A Education