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In Evaluating an Economy's Performance Over a Period of Years,real

Question 179

Multiple Choice

In evaluating an economy's performance over a period of years,real GDP provides a better measuring rod than GDP because


A) GDP is distorted by its failure to show qualitative improvements in the products we manufacture.
B) real GDP is adjusted for the social and environmental costs of production,which are normally not compensated.
C) real GDP includes such productive endeavors as housewife services and home repairs that are performed by households without payment.
D) GDP reflects changes in prices as well as changes in output.

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