For the following question(s), suppose that an economy produces only bread and computers. Assume that all production is consumed in each year, and that price and quantity data are given in the table below.

-Significant problems with measuring real GDP and the price level include
A) changes in the importance of intermediate goods.
B) purchases of used goods.
C) changes in the population size.
D) changes in the quality of goods over time.
E) changes in the size of the government.

Question

For the following question(s), suppose that an economy produces only bread and computers. Assume that all production is consumed in each year, and that price and quantity data are given in the table below.
 
-Significant problems with measuring real GDP and the price level include
A) changes in the importance of intermediate goods. 
B) purchases of used goods. 
C) changes in the population size. 
D) changes in the quality of goods over time. 
E) changes in the size of the government.

Quizplus · Accepted Answer

Changes in the quality of goods over time can affect the measurement of real GDP and the price level, as improvements in quality may not be fully captured, leading to inaccuracies in reflecting true economic growth and inflation.

For the Following Question(s), Suppose That an Economy Produces Only