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 gross domestic product.
C) an increase in gross domestic product.
D) the economist adjusting the figures for the inflation rate.
E) a change in productivity.

Question

Quizplus · Accepted Answer

The economist likely adjusted the figures for the inflation rate, while the executive did not. This would result in the executive's figures being higher, as inflation would make the GDP appear to be growing faster than it actually is.

An Executive at a U