See the figure below. D2 is more elastic than D1. True False Suppose, a trypothetical economy produces two goods; food and clothing. Based on the information below, what is real GDP in 2001 (given that the base year is 20 Foot 1060 Which one of the following statements about Gross Domestic Product (GDP) incorrect? It is not an indicator of inequality. It does not include home production (such as cooking, cleaning, care giving etc.). It is a measure of economic activity. It is a measure of standard of living. QUESTION 20 Pollution is a by-product of some production processes, so on this count real GDP as measured is adjusted downward to take into account the pollution. is adjusted upward to take into account the expenditures that will be made in the future to clean up the pollution. tends to overstate economic activity. tends to understate economic activity..