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Using GDP as a Measure of the Economic Well-Being of a Country

Question 108

Multiple Choice

Using GDP as a measure of the economic well-being of a country can be criticized for ignoring non-market and other activities.However,it remains useful because


A) GDP is the best measure we have of the effects of economic "bads" on the well-being of the country.
B) the change in GDP from one year to the next is a good indication of what rates of inflation and unemployment will be.
C) it provides a good indication of household income distribution when measured from the income side.
D) the change that is measured in GDP from one year to the next is a good indication of the change in economic activity.
E) it is simply not possible to reform the current measure of GDP.

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