Use of real GDP to measure changes in national output from one period to another can be misleading if
A) the price level is different for the two periods.
B) the share of production carried out in the nonmarket sector is different for the two periods.
C) the bundle of goods produced during the periods is quite similar.
D) the size of the export-import sector differs for the two periods.

Question

Quizplus · Accepted Answer

Real GDP may not accurately reflect changes in national output if there is a significant shift in the nonmarket sector, as it does not account for nonmarket activities like household labor or volunteer work.

Use of Real GDP to Measure Changes in National Output