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.