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Which of the Following Is a Limitation of Real GDP

Question 29

Multiple Choice

Which of the following is a limitation of real GDP as a measure of economic well-being?


A) Little is revealed about the distribution or composition of output.
B) Output is overstated because intermediate production is included.
C) It fails to account for the consumption of a country's productive capacity.
D) It measures only a country's expenditures, not its income.
E) It fails to account for expenditures by the public sector.

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