Solved

Why Is Real GDP Not a Good Measure of Average

Question 88

Multiple Choice

Why is real GDP not a good measure of average material living standards?


A) Because it is biased by the changes in the inflation rate.
B) Because it excludes the role of imported goods.
C) Because it does not take into account the size of the population.
D) Because it is sensitive to the base year chosen in its calculation.
E) Because the price level may be changing,which affects what people can afford to buy.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents