The System That Measures the Economy's Overall Performance Is Formally

question 224

Multiple Choice

The system that measures the economy's overall performance is formally known as

• A) national income accounting.
• B) business cycle measurement.
• C) GDP assessment.
• D) final output and income statistics.

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Definitions:

Income Effect

The change in an individual's or economy's income and how that change will affect the quantity demanded of a good or service.

Real Hourly Wages

The hourly wage of workers adjusted for inflation, representing the purchasing power of the income.

Real Wages

Wages adjusted for inflation, giving a true measure of the purchasing power of earned income over time.

Hourly Wage

The amount of money paid to an employee for every hour worked.