Use of Real GDP to Measure Changes in National Output

question 183

Multiple Choice

Use of real GDP to measure changes in national output from one period to another can be misleading if

• A) the price level is different for the two periods.
• B) the share of production carried out in the nonmarket sector is different for the two periods.
• C) the bundle of goods produced during the periods is quite similar.
• D) the size of the export-import sector differs for the two periods.

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Definitions:

Statistical

Related to or based on the use of statistics, involving the collection, analysis, interpretation, and presentation of numerical data.

Double-blind

A study design in which neither the participants nor the experimenters know who is receiving a particular treatment, thereby eliminating bias.

Parsimonious

Characterized by extreme unwillingness to spend resources or use unnecessary means; frugal.

Clever Hans

A horse in early 20th century Germany that was believed to have the ability to perform arithmetic and other intellectual tasks, later understood as an example of the observer-expectancy effect.