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A Weakness of the Measurement of GDP Is That It

question 63

True/False

A weakness of the measurement of GDP is that it includes the value of intermediate goods, therefore some double counting occurs.


Definitions:

Return

Total monetary flow of an asset as a fraction of its price.

Investment

The action or process of allocating resources, usually money, with the expectation of generating an income or profit.

Real Discount Rate

The rate used to discount future cash flows to their present value, adjusting for inflation.

Nominal Discount Rate

The rate of interest quoted or advertised on a loan or investment, not adjusted for inflation.

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