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Real GDP Is Not a Good Measure of Average Material

Question 8

Multiple Choice

Real GDP is not a good measure of average material living standards because


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

Correct Answer:

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