Because GDP Does Not Fully Account for Improvements in the Quality

question 160

Multiple Choice

Because GDP does not fully account for improvements in the quality of goods,

• A) the inflation rate is understated and real GDP is overstated.
• B) the inflation rate is overstated and real GDP is understated.
• C) both the inflation rate and real GDP are overstated.
• D) both the inflation rate and real GDP are understated.

---

Definitions:

Triarchic Theory

A theory of intelligence proposed by Robert Sternberg that suggests there are three types of intelligence: analytical, creative, and practical.

Analytic

Pertaining to or involving the analysis of components or logical reasoning.

Practical Intelligence

The ability to solve everyday problems through insightful understanding of human behaviors and effective use of knowledge and skills.

Creative

The ability or quality of generating new and original ideas, solutions, or artistic expressions.