GDP/GNP Question

CFA Level II
#1

which of the following countries does not adjust GDP for the effects of the black market economy? (is the CFAI this mean? probably) a. US b. Greece c. Italy

#2

U.S

#3

huh? A?

#4

I’m pretty sure none of them do, but US definitely does not.

#5

you would all be wrong. US and Italy are the only countries that do, so answer would be B. This is on page 625 of the CFAI reading. There is lots of random stuff in here (reading 20) and I can see them pulling a curveball a la BOP last year from this chapter. Its only 10 pages, and worth a ~15 minute read if u have time.

#6

so the U.S. counts Al Capone’s money as GDP???.. that means that if they didn’t jail him…we would have this crisis now…

#7

its obviously an estimate, but according to the CFAI book, yes they do.

#8

I like where your heads at Willispierre… im all for CFAI text pop quiz

#9

guilleku1 Wrote: ------------------------------------------------------- > so the U.S. counts Al Capone’s money as > GDP???.. that means that if they didn’t jail > him…we would have this crisis now… good way to remember this as al capone was iitalian american

#10

i’m feeling good right now, and am gonna hit ethics tomorrow and friday, so figured i’d scour the CFAI books in some of my weaker areas this afternoon to pick up on some random tidbits… i’ll keep em coming.