GDP excludes most nonmarket transactions. Therefore, GDP tends to: 1. Underestimate the rate of inflation in the economy 2. Overestimate the amount of production of the economy 3. Overestimate the rate of inflation in the economy 4. Underestimate the amount of production in the economy

underestimate the amount of production in the economy ( 4 )

Explanation:

The GDP ( gross domestic product ) is the monetary measure of the economic growth of an economy i.e the monetary value of all final goods and service produced in an economy within a specific/given time

GDP excludes most non-market transactions when been computed by the financial body charged with the responsibility. therefore most non-market production like babysitting and domestic cleaning and other forms of non-market service been rendered in the economy are not computed.

therefore GDP underestimates the amount of production in the economy.