Why Is Real GDP Not a Good Measure of Average

question 104

Multiple Choice

Why is real GDP not a good measure of average material living standards?

• A)Because it is biased by the changes in the inflation rate.
• B)Because it excludes the role of imported goods.
• C)Because it does not take into account the size of the population.
• D)Because it is sensitive to the base year chosen in its calculation.
• E)Because the price level may be changing,which affects what people can afford to buy.

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Definitions:

Inhaled Steroids

Medications delivered through inhalation to reduce inflammation in the respiratory tract, commonly used in asthma and COPD.

Long-Term Use

The extended usage of a product or medication over a significant period, which may lead to dependency or side effects.

Anemia

A condition in which the blood lacks enough healthy red blood cells or hemoglobin, leading to a reduced ability to carry oxygen.

Aspirin

A medication used to reduce pain, fever, inflammation, and in low doses, to prevent blood clots.