An executive at a U.S.Steel Company uses growth in gross domestic product as one way to develop trends in industry steel use; so he records GDP change for each year on a graph.However, the executive's figures are considerably higher than those of the staff economist, who also has drawn a graph.This difference is most likely the result of
A) measurement errors by the U.S.Bureau of the Census.
B) a decline in the gross domestic product.
C) an increase in the gross domestic product.
D) the economist adjusting the figures for the inflation rate.
E) a change in productivity.

Question

Quizplus · Accepted Answer

The economist most likely adjusted the figures for the inflation rate, which would result in a lower GDP figure compared to the executive's unadjusted figures. This is a common practice in economic analysis to account for the impact of inflation on economic growth.

An Executive at a U