Changes in the Relative Prices of Goods Causes Problems Measuring

question 33

Multiple Choice

Changes in the relative prices of goods causes problems measuring real GDP because

• A)they tend to be inaccurate.
• B)firms produce more of the cheaper good.
• C)consumers buy less of the cheaper good.
• D)consumers change their buying habits.
• E)price deflators only measure the price level.

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Definitions:

Drag

The action of clicking and holding a digital object and moving it to a different location on the screen.

Auto Theft

The unlawful activity of taking or trying to take a motor vehicle without permission.

Carjacking

The act of violently stealing an occupied vehicle, usually involving threats or force against the driver.

Property Crime

Crimes that involve the theft of property or money without the use of force against victims.