A Shortcoming of Real GDP Is It

question 5

Multiple Choice

A shortcoming of real GDP is it:

• A) does not include the underground economy.
• B) includes non-market goods.
• C) does not measure changes in employment.
• D) does not include the value obtained through purchases of stocks and bonds.
• E) does not account for changes in the prices of goods and services.

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Definitions:

Deposited

Referring to money that has been placed into a financial account for safekeeping or savings.

Time-Value

Refers to the concept that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.

Monetary Compensation

Payment provided to employees or workers in the form of money for their services or labor.

Labor Time

The duration of time workers spend performing their duties to produce goods or provide services.