GDP is unaffected by changes in the quality of a good or service.

Name: GDP is unaffected by changes in the quality of a good or service.
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Question

Quizplus · Accepted Answer

GDP is affected by changes in the quality of a good or service through the concept of real GDP, which adjusts for changes in prices and quality. Real GDP is a more accurate measure of economic output than nominal GDP, which does not take into account changes in the value of money or changes in the quality of goods and services produced.

GDP Is Unaffected by Changes in the Quality of a Good