Economists Do Not Use Actual Values of Real GDP to Measure

question 8

Multiple Choice

Economists do not use actual values of real GDP to measure economic growth because

• A) real GDP holds price level constant, but in reality price level changes from year to year.
• B) changes in real GDP could be due to fluctuations in the level of economic activity.
• C) economic growth encompasses more than just growth in output.
• D) changes in real GDP do not provide any information about income distribution.

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Definitions:

Good Faith

An honest intention to act without taking an unfair advantage over another party, often a principle in contract law.

Improper

Not according to the legal standards or rules; incorrect or inappropriate.

Voidable

A contract or transaction that is voidable can be legally nullified or cancelled by one of the parties involved, often due to reasons like misrepresentation or lack of capacity.

Misrepresentation

A false statement of fact made by one party to another, which has the effect of inducing that other party into a contract.