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.

Understand mathematical operations involving mean and their effects on data sets.

Understand basic statistical computations such as average, standard deviation, and range for given data sets.

Understand the selection of appropriate measures of central tendency in various contexts.

Understand the principles behind sample and population characteristics, including parameters and statistics.

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Definitions:

Voluntary Export Restriction

An agreement by a country to limit the quantity of goods exported to another country to avoid tariffs or quotas.

Import Quota

A government-imposed limit on the quantity or value of a specific commodity that can be imported into a country.

Protective Tariff

A tax imposed on imported goods to shield domestic industries from foreign competition by making imported goods more expensive.

Import Quota

A government-imposed limit on the quantity or value of goods that can be imported into a country, used to protect domestic industries and manage trade balances.