If we use GDP to measure our standard of living, then our procedure is
A)accurate because our standard of living depends solely on goods and services.
B)inaccurate because our standard of living has nothing to do with goods and services.
C)inaccurate because our standard of living only depends on used goods and services.
D)accurate only if we use nominal GDP rather than real GDP.
E)inaccurate because our standard of living does not depend only on goods and services.

Question

Quizplus · Accepted Answer

GDP measures the total value of goods and services produced, but standard of living also includes factors like income distribution, environmental quality, and leisure time, which GDP does not account for.

If We Use GDP to Measure Our Standard of Living