A shortcoming of non-adjusted GDP is that:
A) an increase in non-adjusted GDP can be caused by changes in either price or quantity.
B) it does not measure changes in employment.
C) it does not measure changes in price.
D) it does not include net exports.
E) it does not include the value obtained through purchases of stocks and bonds.

Question

Quizplus · Accepted Answer

Non-adjusted GDP only measures the total value of goods and services produced in a country without taking into account changes in price levels. Therefore, an increase in non-adjusted GDP can be caused by either an increase in quantity or an increase in prices, making it a less precise measure of economic growth.

A Shortcoming of Non-Adjusted GDP Is That