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:

Complementary Events

Two events that are mutually exclusive and exhaustive, meaning exactly one of them must happen.

Probabilities

Numerical values ranging from 0 to 1, representing the likelihood of occurrence of a specific event or outcome.

Sample Points

Individual units or observations collected from the sample, each of which represents a data point.

Department Store

A large retail store offering a wide variety of products and departments under one roof.