Increases in Real GDP Are Considered the Best Measure of Increases

question 27

Multiple Choice

Increases in real GDP are considered the best measure of increases in living standards, because they measure:

• A) only increases in prices.
• B) only increases in production.
• C) both increases in prices and increases in production.
• D) only increases in the cost of living.

---

Definitions:

Behavioral Prediction

The degree to which a judgment or measurement can predict the behavior of the person in question.

Internal Consistency

A measure of how well the items on a test measure the same construct or concept, indicating the reliability of the scale.

Predictive Validity

The degree to which one measure can be used to predict another.

Reputation

The public perception or the general opinion about a person, organization, or thing, based on their actions, character, or achievements.